St. Paul, MN (December 21, 2020) – The Federal Reserve held short-term borrowing rates near zero in a decision that characterized the economy as growing.

As markets widely expected, the Federal Reserve kept its benchmark interest rate anchored in a range between 0%-0.25%, where it has been since an emergency cut seven months ago in the early days of the coronavirus pandemic.

In the third quarter, U.S. gross domestic product posted its fastest increase ever, rising at a 33.1% annualized pace after contracting 31.4% in the previous period.

Federal Reserve leaders are determined to keep borrowing costs low to help the economy recover from the Covid-19 recession.

According to Gardner Business Media, the monetary base was $5.093 trillion in November, which was an increase from the previous month and the second highest (May 2020) level ever.

Historically, the annual rate of change in the monetary base leads capital equipment consumption, specifically machine tool orders, by 12-18 months.

Compared with one year ago, November’s monetary base was up 53.6%, which was the third month in a row and fifth in the last seven months with faster than 50% growth. This was the eighth consecutive month that the month-over-month rate of change was faster than 44%. This was the 12th month in a row of month-over-month growth. The annual rate of growth accelerated to 35.4% in November, which was the eighth straight month of accelerating growth and the fastest rate of growth since June 2010.

The recent rapidly accelerating growth in the monetary base should eventually lead to accelerating growth in machine tool orders and capital equipment in general. It is likely that machine tool orders bottomed in August.

More from Gardner: https://www.mmsonline.com/

Matsuura Machinery USA, Inc., located in St. Paul, MN is the U.S. subsidiary of Matsuura Machinery Corporation in Japan. Matsuura, an innovator in the design, development and manufacture of high-precision manufacturing solutions for more than 80 years, has been the forerunner in designing pioneering technology and manufacturing solutions to a variety of industries around the globe. Matsuura Machinery USA, Inc. delivers unmatched excellence in 5-axis, vertical, horizontal, linear motor, multi-tasking CNC machine tools and machines with a powder bed metal AM platform with machining capability. Matsuura Machinery USA, Inc. provides the service, applications and technical field support that have always been the Matsuura standard for business.

For more information about Matsuura, please contact: [email protected].com.