The Federal Reserve has warned the fate of the world’s largest economy would “depend significantly on the course of the virus” as the US central bank extended measures to deal with an international shortage of dollars.
After a two-day meeting on Wednesday, the Federal Open Market Committee made no significant changes to monetary policy, holding interest rates close to zero and pledging to do more to support the recovery if necessary.
It did, however, announce that it would be extending emergency swap lines with some other central banks until the end of the first quarter of 2021, and a temporary repurchase facility for international monetary authorities to swap Treasuries for dollars.