Fed plans to keep key interest rate near zero through 2023

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WASHINGTON (MarketWatch) – The Federal Reserve on Wednesday signaled it plans to keep a key U.S. short-term interest rate near zero at least through the end of 2023 to help the economy recover from the coronavirus. As expected, the central bank left its benchmark fed funds rate near zero. The Fed’s forecasts for 2023, released for the first time, also see the rate staying near zero from now until at least 2024. Two members dissented, Robert Kaplan and Neal Kashkari. The Fed also raised its estimates for 2020 GDP and lowered its forecast for unemployment to 7.6% in light of a rapid rebound in the economy over the summer.
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