Federal Reserve expects to keep near zero interest rate through 2022

The Federal Reserve on Wednesday announced that it will keep the target federal funds rate at the current 0-0.25 percent range and indicated that it expects to maintain the low interest rate through 2022.

The nation's economic engine was badly battered both by the coronavirus crisis and related lockdowns that tanked the economy and led to skyrocketing unemployment, but the country has been emerging from the crisis.

"To sustain smooth market functioning and thereby foster the effective transmission of monetary policy to broader financial conditions, we will increase our holdings of Treasury and agency mortgage-backed securities over coming months at least at the current pace," Fed Chairman Jerome Powell said.

While the coronavirus pandemic dominated the headlines in recent months, the May 25 death of George Floyd in Minnesota has more recently captured national attention. Floyd, a black man, was pinned down by a white police officer and could be heard in a video saying that he could not breathe.

"Finally, I want to acknowledge the tragic events that have again put a spotlight on the pain of racial injustice in this country," Powell said.

"I speak for my colleagues throughout the Federal Reserve System when I say that there is no place at the Federal Reserve for racism and there should be no place for it in our society," he said.