Even while pressure mounts to taper its asset purchases, the central bank will continue its accommodative quantitative easing.
This was a significant increase from the 2.4% officials were predicting in March.
Fed Chair Jerome Powell's challenge is to convince traders he's got the resolve to respond to runaway inflation, without actually doing anything.
The question is whether Powell will allow bond yields to keep rising or if the Fed will step in to ward off any unwanted market reaction.
The central bank doesn’t want to pull back asset purchases just yet, Powell said Wednesday.
The U.S. central bank said interest rates will remain close to zero.
When FOMC minutes suggested the Federal Reserve might not employ yield curve control, the markets reacted angrily.
The Federal Reserve said Wednesday it would hold benchmark U.S. interest rates close to zero and continue buying Treasury bonds to support the coronavirus-devastated economy.
With the Fed dashing hopes of a V-shaped recovery, it's uncertain whether bitcoin will become a store of value or begin to track stocks.
Effectively, this is “QE4,” the fourth major round of quantitative easing by the American central bank since the global financial crisis a little more than a decade ago.