- The Federal Reserve on Wednesday said it would keep its benchmark interest rate near zero.
- It's likely that the low-interest rate environment will continue for a while as the economy recovers from the coronavirus pandemic.
- That means many Americans could refinance debt to save money.
Federal Reserve Chairman Jerome Powell speaks at a virtual news conference in Tiskilwa, Illinois, on Dec. 16, 2020.Daniel Acker | Bloomberg | Getty Images
The Federal Reserve on Wednesday kept its benchmark interest rate at zero to continue to support the economic recovery from the coronavirus pandemic.
The decision comes just days after the $1.9 trillion American Rescue Plan was signed into law, adding even more stimulus to boost the U.S. economy.
In addition, vaccinations are ramping up — so far, more than 110 million Americans have been given the Covid-19 vaccination, according to data from the Centers for Disease Control and Prevention. And, more adults will be eligible to get vaccinated soon. In a March 11 speech, President Joe Biden asked that all states make all adults eligible for the vaccine by May 1.
Still, even with the economic recovery underway, the central bank is committed to supporting the rebound. That means that historic low rates will likely stick around for a while. The Fed indicated Wednesday that any interest rate hike is unlikely through 2023.
"They are going to stick to their guns this time and they're not going to raise rates prematurely," said Robert Frick, corporate economist at Navy Federal Credit Union.
