The Federal Reserve has kept monetary policy steady with interest rates at rock bottom and no changes to its bond purchases, as chairman Jay Powell said the rise in coronavirus cases was “particularly concerning”.

In a statement on Thursday, the Federal Open Market Committee said it would hold the fed funds rate at its lowest level between 0 per cent and 0.25 per cent — and reiterated its pledge to keep it there until the pandemic-hit economy reached full employment with higher inflation. It also repeated that it was committed to using its “full range of tools” to support the economy.

“The path of the economy will depend significantly on the course of the virus,” the Fed said in its statement. “The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.”