Highlights:

• The Federal Reserve held its key interest rate near zero and said it plans to continue supporting the economic recovery, while acknowledging recent progress in growth and employment.
• The Fed said “Inflation has risen, largely reflecting transitory factors.”
• A burst of growth brought the U.S. economy to just a hair below its pre-pandemic size in the first quarter, extending what is shaping up to be a rapid, consumer-driven recovery this year.
• Gross domestic product, the nation’s broadest measure of goods and services, grew at a 6.4% seasonally adjusted annual rate in January through March, the Commerce Department said Thursday. That left the world’s largest economy within 1% of its peak, reached in late 2019 before the corona-virus pandemic hit the U.S.Congress responded quickly, approving several packages totaling about $5 trillion in aid for households and businesses. The Federal Reserve pushed its benchmark interest rate to near zero to lower borrowing costs.