WASHINGTON—The Federal Open Market Committee (FOMC) decision earlier this week to maintain the federal funds target rate at its current range of 0% to 0.25% is an acknowledgment the economic recovery has stalled in recent months due to increased COVID-19 cases, according to one economist.
"While there was a reference to the progress on vaccine distribution and its potential to alter the path of economy, there was no indication that a change in asset purchase volume is anywhere in view,” said NAFCU Chief Economist and Vice President of Research Curt Long.
As it has in its recent meetings, the FOMC again issued a statement that the Fed is "committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals."
During the meeting, the committee also unanimously reaffirmed its "Statement of Longer-Run Goals and Monetary Policy Strategy," originally adopted in August 2020 following a review of monetary policy strategy, tools, and communications practices.
Long said the new strategy framework seeks to better reflect economic changes and monetary policy approaches. Throughout the coronavirus pandemic, the Fed has made clear its intention to use its tools to their fullest potential until the economic recovery is well underway and Long previously said the statement "looks to avoid the mistakes of the past."
The FOMC is expected to next meet March 16-17. Its tentative meeting schedule for 2021 can be viewed here.
When the government shutdown hit in October and paychecks stopped, thousands of federal employees were left wondering how to make ends meet. Credit unions across the country stepped up—but Keesler Federal Credit Union went above and beyond. No loans, no hassle—just your paycheck Instead of making members apply for emergency loans, Keesler Federal launched its Paycheck Relief Program. Revolutionary in its simplicity, it worked like this: if you were a federal employee with direct deposit at Keesler Federal, your paycheck kept coming—interest-free, fee-free, and stress-free. Each qualified member could receive up to $6,000 per pay period for as long as 90 days. No hoops, no headaches. From October 1 until the shutdown ended, Keesler Federal advanced more than 5,000 paychecks totaling $6.5 million to 1,710 members. For non-members, they even offered zero-interest loans up to $6,500 with a year to pay it back. This proactive approach meant that before the first missed paycheck, Keesler Fed...
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