Fed leaves interest rates at zero, pledges “full range of tools” to help economy

The U.S. Federal Reserve (Fed) has on Wednesday kept interest rates unchanged near zero, saying it would deploy its “full range of tools” to support the economy.

The U.S. central bank said the coronavirus pandemic continues to wreak havoc on the economy, CNN reported.

“The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world,” Fed’s committee said in a statement.

“The virus and the measures taken to protect public health are inducing sharp declines in economic activity and a surge in job losses.”

The move followed Fed officials’ two-day meeting in Washington to maintain rates as they continued to witness signs of a badly damaged economy.

Unlike some other central banks, Fed’s decision to refrain from dropping rates into negative territory had been widely expected by investors after Fed Chairman Jerome Powell and several other Fed board members spoke out against negative rates.