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Federal Reserve adjusts inflation target, rate unchanged

The Federal Reserve adjusted its inflation target to seek price increases above 2% annually, a move that will likely keep interest rates low for years to come.
The Federal Reserve adjusted its inflation target to seek price increases above 2% annually, a move that will likely keep interest rates low for years to come.(WTVG)
Published: Sep. 16, 2020 at 7:03 PM CDT
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WASHINGTON (AP) - The Federal Reserve adjusted its inflation target to seek price increases above 2% annually, a move that will likely keep interest rates low for years to come.

The Fed on Wednesday also left its benchmark short-term rate unchanged at nearly zero, where it has been since the pandemic intensified in March.

Fed officials also indicated in a set of economic projections that they expect the rate to stay there at least through 2023.

That interest rate in turn influences borrowing costs for homebuyers, credit card users, and businesses.

Copyright 2020 The Associated Press. All rights reserved.

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