Assist-2-Sell Today / Ryan's Library-Recommend Reading
Fed keeps interest rates low
Yesterday the Federal Reserve left interest rates near zero and vowed to keep them there for a while to nurture an economic recovery held back by stubbornly high unemployment. The policy statement reflected a somewhat brighter tone than it had at the previous meeting in December. "Information received since the Federal Open Market Committee met in December suggests that economic activity has continued to strengthen and that the deterioration in the labor market is abating,'' the Fed said. In the December statement, the Fed had said economic activity "has continued to pick up.'' The decision to hold rates steady was 9-1, with Kansas City Federal Reserve Bank President Thomas Hoenig dissenting because he wanted the central bank to eliminate a phrase vowing to keep rates exceptionally low for an extended period. However, the Fed dropped a reference that had been included in December's statement which said the housing sector ''has shown some signs of improvement over recent
months. ''The Fed repeated its intention to allow purchasing of some $1.43 trillion in housing-linked debt to conclude as scheduled by the end of March, but added: "The Federal Reserve is prepared to modify these plans if necessary to support financial stability and economic growth.''
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