Fed maintains target range for federal funds rate at 0% to 1/4%

April 29, 2020


Tremendous human and economic hardship blankets the United States and the World due to the outbreak of the coronavirus. The outbreak has resulted in the implementation of numerous measures to protect public health while inducing declines in economic activity and a surge in job losses. The Federal Reserve cites, “weaker demand and significantly lower oil prices are holding down consumer price inflation. The disruptions to economic activity here and abroad have significantly affected financial conditions and have impaired the flow of credit to U.S. households and businesses.”

For the near term, the Fed sees economic activity, employment and inflations being affected by the ongoing health crisis, thus posing considerable risks to the economic outlook over the medium term. As a result, the Committee decided to maintain the target range for the federal funds rate at 0 to 1/4 percent. The range is expected to remain until the Committee is confident that the economy has weathered the recent events and is on track to achieve its maximum employment and price stability.

The Federal Reserve reiterates its commitment 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. The Committee will also continue to monitor the implications of information for the economic outlook, including information related to public health, as well as global developments and muted inflation pressures, and will use its tools and act as appropriate to support the economy.



Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect