+10 C°
Traffic jam:   0

Interest rates may remain zero until 2023-2024

24 November 2020
2 min.
Interest rates may remain zero until 2023-2024

Recovery of the United States economy

The Fed can keep rates zero for another three to four years while the US economy recovers and inflation reaches 2% or more.

Charles Evans, President of the Chicago Federal Reserve Bank, said he expects "a fairly long way" before the US economy recovers from the Coronavirus Pandemic crisis. He expects the Fed to maintain interest rates at current levels of 0%-0.25%, possibly until 2024.

Evans said: "If next year's economy recovers and we beat the virus and the vaccines are very effective and they are being introduced quickly and everywhere, then we'll be in a much better position".

News of the soon-to-be-approved FDA approval for Pfizer (PFE) and BioNTech and Moderna (MRNA) coronavirus vaccines is giving financial markets a positive sentiment amid a difficult situation with rising morbidity and low employment. In addition, legislators have not adopted a new stimulus package for the economy and, analysts say, it is unlikely to be adopted before Joe Biden's inauguration.

Last week Finance Minister Steven Mnuchin announced the expiry of key Fed lending programmes on 31 December to return unused funds to the Treasury.

The Fed, in turn, calls on the government to increase federal aid, both for those who lost their jobs due to the pandemic and for states and local authorities where budgets have been affected by falling tax revenues.

In addition, the President of the Federal Bank of Chicago said that a little additional fiscal support would remove more uncertainty from the current situation.

The Fed's current strategy is to support interest rates around zero until the US economy reaches full employment and inflation not only reaches but exceeds the 2% target. According to Evans, inflation is unlikely to reach 2% by the end of 2022 or even 2023, so rates may not rise even until 2024.

Persons3 and Companies5 in the news

President of the Federal Reserve Bank of Chicago
1 place
46th President of the United States
2 place
Secretary of the Treasury
3 place
2 place
3 place
5 place


Rating companies
52 Mention
51 Mention
49 Mention
46 Mention
Dow Jones
40 Mention
38 Mention
White House
31 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director