# Fed decision December 2020: Buying bonds until economy hits full employment

> The Fed committed to keep buying at least $120 billion of bonds per month until substantial further progress is made toward maximum employment and 2% inflation. It held short-term rates near zero and did not extend the duration of its bond purchases, as some investors had expected. The decision was approved unanimously.

- Date: 2020-12-16 · published 2020-12-16T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/49563-fed-decision-december-2020-buying-bonds-until-economy-hits-full-employment
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Ongoing Fed asset purchases and low rates add liquidity and tend to weaken the dollar, which can support dollar-denominated commodity prices.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-09-16 | [Fed decision September 2020: Interest rates unchanged](https://feedsoft.ai/events/51032-fed-decision-september-2020-interest-rates-unchanged.md) | +0.8% | +0.1% |
| DXY | 2019-03-22 | [Confusion Hits Markets Over Fed’s No Rate Hike Decision](https://feedsoft.ai/events/60267-confusion-hits-markets-over-fed-s-no-rate-hike-decision.md) | +1.0% | +0.5% |
| DXY | 2019-06-20 | [Dovish Fed Hits The US Dollar \| ECONOMETER](https://feedsoft.ai/events/58783-dovish-fed-hits-the-us-dollar-econometer.md) | -1.1% | -0.8% |
| DXY | 2021-01-27 | [Fed decision January 2021: rates unchanged](https://feedsoft.ai/events/49064-fed-decision-january-2021-rates-unchanged.md) | +0.6% | +0.1% |
| DXY | 2023-05-04 | [Outlook on gold as it hits record high, while USD and oil fall after Fed decision \| IG International](https://feedsoft.ai/events/35838-outlook-on-gold-as-it-hits-record-high-while-usd-and-oil-fall-after-fed.md) | -0.5% | +0.8% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/12/16/fed-decision-december-2020-fed-commits-to-keep-buying-bonds-until-the-economy-gets-back-to-full-employment.html

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