WASHINGTON—The Federal Reserve warned on Jan. 27 that the U.S. economy is a long way from recovery as the resurgence in COVID-19 has weighed on economic activity and the labor market. After the conclusion of the central bank’s two-day policy meeting, Fed officials announced that they would hold the target range for the federal funds rate at zero to 0.25 percent, as the pandemic continues to pose “considerable risks to the economic outlook.” “The pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic,” the Federal Open Market Committee (FOMC) statement read. The Fed released its economic forecasts last month, upgrading its outlook for the labor market and the economy. Since the Fed’s Dec. 16 meeting, however, the economy’s momentum has reversed due to resurgence of the virus, which prompted a series of renewed lockdown measures. The economy lost …