# Fed keeps rate near zero and sees brighter economy in 2021 | AP News

> The Federal Reserve kept its benchmark short-term interest rate near zero and projected it would stay there through at least 2023. The rate has been at this level since March, when the Fed took extraordinary steps to support credit during the pandemic recession. The Fed also upgraded its outlook for the economy in 2021.

- Date: 2020-12-16 · published 2020-12-16T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/49562-fed-keeps-rate-near-zero-and-sees-brighter-economy-in-2021-ap-news
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Near-zero U.S. rates reduce the yield advantage of holding dollars, which tends to weigh on the dollar and support dollar-priced commodities such as grains and oilseeds.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-03-17 | [Fed expects to keep its key rate near zero through 2023 \| AP News](https://feedsoft.ai/events/48017-fed-expects-to-keep-its-key-rate-near-zero-through-2023-ap-news.md) | +0.3% | +0.0% |
| DXY | 2021-04-28 | [Fed decision April 2021: Interest rates held near zero, sees faster growth](https://feedsoft.ai/events/47513-fed-decision-april-2021-interest-rates-held-near-zero-sees-faster-growth.md) | +0.3% | -1.0% |
| DXY | 2019-03-21 | [New Fed forecast for 2019: Slower growth and zero rate hikes \| AP News](https://feedsoft.ai/events/59991-new-fed-forecast-for-2019-slower-growth-and-zero-rate-hikes-ap-news.md) | +0.9% | +0.3% |
| DXY | 2021-07-28 | [Fed says US economy has 'made progress' but holds rates at near-zero](https://feedsoft.ai/events/45977-fed-says-us-economy-has-made-progress-but-holds-rates-at-near-zero.md) | -0.4% | +0.4% |
| DXY | 2020-06-10 | [Fed sees interest rates staying near zero through 2022, GDP bouncing to 5% next year](https://feedsoft.ai/events/52518-fed-sees-interest-rates-staying-near-zero-through-2022-gdp-bouncing-to-5-next.md) | +0.8% | +0.8% |

## Sources

- apnews.com: https://apnews.com/article/coronavirus-pandemic-economy-e7f899e70da7574900261063b78d1b7c

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.