Fed pledges to keep buying bonds

The Federal Reserve on Wednesday promised to keep funneling cash into financial markets further into the future to fight the recession, even as policymakers' outlook for next year improved following initial rollout of a coronavirus vaccine.

Repeating a pledge to keep its benchmark overnight interest rate near zero until an economic recovery is complete, the U.S. central bank said it would also now tie its program of monthly government bond purchases to that same goal.

"We'll be looking for employment to be substantially closer to assessments of its maximum level and inflation to be substantially closer to our 2 percent longer run goal before we start making adjustments to our purchases," Powell said during a news conference on Wednesday (December 16).