The Federal Reserve left their target rate unchanged at 25 basis points.
Their Dots Plots shows that interest rates will eventually rise past 2023.
(Bloomberg) — The Federal Reserve said it had extended through September 2021 two programs designed to insure the ready supply of U.S. dollars worldwide and smooth the functioning of the market for U.S. Treasuries.
“A further extension of these facilities will help sustain recent improvements in global U.S. dollar funding markets by serving as an important liquidity backstop,” the Fed said in a statement Wednesday.
Officials said they would continue temporary U.S. dollar liquidity swap lines opened in March between the Fed and nine foreign central banks past March 31, when they were scheduled to expire.
They also extended the temporary repurchase agreement facility for foreign and international monetary authorities, which allows other foreign central banks to access dollars by depositing Treasuries with the Fed.
Fed swap lines provide foreign central banks with the capacity to deliver U.S. dollar funding to banks and businesses in their jurisdictions during times of market stress.
The Fed maintains standing swap lines with five major central banks, including the European Central Bank and the Bank of Japan. It established additional, temporary swap lines and the repurchase facility in March when fears over the impact of the Covid-19 pandemic gripped financial markets.
Both programs were initially set up to run for “at least six months.” On July 29 they were extended to March 31, 2021.
Welcome to Washington DC where programs rarely shut down.
We’ve got never ending Fed stimulus!