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The Federal Reserve on Wednesday predicted the U.S. unemployment rate would fall faster in 2021 than it previously predicted, but left most of its economic forecast for next year unchanged.
The Fed said the jobless rate is likely to decline to 5% by the end of 2021, compared to its previous 5.5% estimate. The unemployment rate stood at 6.7% in November.
The central bank left its benchmark short-term interest rate, known as fed funds, near zero. The Fed cut rates to the bone early in the pandemic to drive down interest rates in an effort to prop up the U.S. economy.
The central bank has also been buying $120 billion in Treasurys and mortgage-backed securities each month to keep interest rates ultra-low.
Read: Americans stick near home again due to coronavirus resurgence in fresh blow to the economy
