Fed holds rates steady, says sectors most affected by pandemic are showing improvement

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Fed holds rates steady, says sectors most affected by pandemic are showing improvement
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Federal Reserve officials vote to keep interest rates at current levels, extending the central bank's support for the economy as Covid-19 infection rates surge and vaccination rates stall out.

Jerome Powell, chairman of the U.S. Federal Reserve, arrives for a Senate Banking Committee hearing on July 15, 2021.Federal Reserve officials voted Wednesday to keep interest rates at their current levels, extending the central bank's support for the economy as Covid infection rates surge and vaccination rates stall out.

When the pandemic hit in March 2020, the Fed enacted a series of extraordinary measures to support the economy, buying up billions of dollars in monthly assets — $80 billion in Treasury securities and $40 billion in mortgage securities — to prop up the economy and slashing interest rates to stave off a financial crisis.

“We have not reached substantial further progress yet. We see ourselves having some ground to cover to get there," Powell said in a press conference following Wednesday's rate announcement.

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