The U.S. Federal Reserve on Wednesday repeated its promise of continued extraordinary support for the economy as policymakers projected a 6.5% decline in gross domestic product this year and a 9.3% unemployment rate at year’s end.
With the initial market reaction, the US Dollar Index fell toward 96.00 before starting to edge higher. As of writing, the index was down 0.3% on the day at 96.12.
“The ongoing public health crisis will weigh heavily on economic activity, employment and inflation in the near term and poses considerable risks to the economic outlook over the medium term,” the Fed said in its latest policy statement. The first policymaker economic projections since December see the overnight interest rate remaining near zero through at least 2022.