US Fed foresees no rate hike through 2022

WASHINGTON

The US Federal Reserve announced Wednesday it has no plans to raise interest rates through 2022 as the global economy continues to find itself in the midst of the coronavirus' economic onslaught.

The Fed said it continues to be "committed to using its full range of tools to support the U.S. economy in this challenging time," noting it would continue to buy bonds and keep borrowing rates where they stand near zero as the US economy grapples with high unemployment and a recession caused by the pandemic.

Rates currently stand between zero and 0.25%.

"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 central bank said in a statement following a meeting of the Federal Open Market Committee.

Markets climbed on the announcement before the Dow and S&P 500 posted losses in late-day trading.