The Federal Reserve reaffirmed that it is willing to use its “full range of tools” and hence left the interest rates unchanged on Wednesday in support of the recovering US economy, reported CNN. 

The safety precautions that are being taken across multiple states in the US to curb the spread of COVID-19 have been continued to keep the US economy in shackles, Sectors such as hospitality and leisure and travel have faced the blow of economic slowdown in the country. Moreover, the US economy also sustained the loss of over 140,000 jobs in the month of December. 

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The Central Bank said in a statement, “The path of the economy will depend significantly on the course of the virus, including progress on vaccinations.”

The newly instated Treasury Secretary and former chair of the Federal Reserve, Janet Yellen and the current chair, Jerome Powell, have demonstrated support for the notion of providing additional support for the economic recovery and also agree on the decision of keeping the interest rates at status quo. 

CEO of Quill Intelligence, Danielle DiMartino Booth said, “Worry about the Fed tapering its stimulus is premature right now, as the slow COVID-19 vaccine rollout will likely delay any kind of Fed stimulus withdrawal until well into 2022”, reported CNN.

Wall Street stocks slid to session lows as Powell warned the economical situation of the US was “highly uncertain” amid the surging COVID-19 outbreak, reported AFP. 

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The Dow Jones Industrial Average was down 1.9% at 30,338.08.

The broad-based S&P 500 slipped 2.6% to 3,749.77, while the tech-rich Nasdaq Composite Index was down 2.7% to 13,254.98.

The Federal Reserve’s statement said, “The pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic.”