Federal Reserve confronts shaky economy, job market
WASHINGTON — Federal Reserve officials are meeting this week with the economy facing growing threats from a resurgence of the coronavirus and from Congress’ failure to provide any further aid for struggling individuals and businesses.
Yet the Fed will likely end its latest policy meeting Thursday by deciding to wait before determining whether or how to expand the economic support it has been supplying through ultra-low interest rates. The central bank has been buying Treasury and mortgage bonds to hold down long-term borrowing rates to encourage spending. And it has kept its key short-term rate, which influences many corporate and individual loans, near zero.
The economy and the job market have weakened again after initially strong bounce-backs from the pandemic-fueled recession that erupted in early spring.
