Fed downplays Delta risks as interest rates left unchanged

The message was 'somewhat hawkish'

The US Federal Reserve left interest rates and its multi-billion monthly programme of bond purchases unchanged after its latest meeting on Wednesday (28 July), as the central bank played down concerns about the coronavirus Delta variant in the US.

Jerome Powell, chair of the US Federal Reserve, said the bank "expects further progress" and that "if things go well" it will reach that goal. "And when we reach it, and the committee is comfortable that we have reached it, then we'll taper at that point," he added. Anna Stupnytska, global economist at Fidelity International said the message was "somewhat hawkish" as Powell did not mention the risk of the Delta variant explicitly. "The growing risks around the outlook since the last meeting, as well as concerns about potential spillovers from China market weakness driven by regulat...