FOMC Meeting July 28-29: Dovish tone signals more accommodation for an extended period

Summary

As expected, the Fed left interest rates unchanged and reaffirmed its commitment to, at a minimum, maintaining the current pace of asset purchases while also defending its expanded use of its lending powers until the economy is on the road to recovery.

Key points

• Key points:
• The impact of the pandemic-led recession has been heterogeneous, damaging lower-income households, minorities, women and younger individuals
• The path of the economy will depend significantly on the course of the virus

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