Federal Reserve Vows to Keep Doing What It Takes

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The Federal Reserve will continue doing what it takes to backstop the pandemic-stricken U.S. economy.

That was the between-the-lines message from the Federal Open Market Committee, which kept the benchmark fed funds rate at between zero and 0.25% and reinforced its commitment to continue to keep the economy and financial markets running.

Indeed, policy-makers confirmed that with renewed signs that the U.S. economy may be losing momentum following a boomerang-like bounce back they will continue both buying up assets to stabilize financial markets and bolster economic growth, which is expected to have contracted by double-digits in the second quarter.

"The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world," the FOMC said in its statement. "Following sharp declines, economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year."

While the Fed's moves remain a focal point for markets, investors are more focused on what type of stimulus package Congress can agree to. So far Senate Republicans have proposed an additional $1 trillion in stimulus that includes enhanced unemployment benefits set to expire at the end of this week.

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