Fed touts economic recovery, vows to keep interest rates low

WASHINGTON: The Federal Reserve on Wednesday vowed to keep interest rates near zero until inflation is on track to overshoot the U.S. central bank's 2per cent target, a bold new promise aimed at bringing millions of out-of-work Americans back to the labor market.

"Effectively what we are saying is that rates will remain highly accommodative until the economy is far along in its recovery," Fed Chair Jerome Powell said in a news conference following the release of the policy statement and new economic projections. But with parts of the economy, like the travel and entertainment sectors, likely to take longer to revive, millions will still struggle to find work.

The Fed's pledge to remain accommodating for the foreseeable future initially lifted stocks, but a return of selling in the technology sector left Wall Street largely lower by day's end. Yields on long-dated Treasury securities ticked higher, meanwhile, while the dollar ended the day little changed against major trading partner currencies.

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