Fed extends low interest rate pledge
Fed extends low interest rate pledge
Federal Reserve officials said today that benchmark interest rates will stay low until at least late 2014, and they anticipate that unemployment will remain high and inflation “subdued,” Bloomberg reported.
“The Committee expects to maintain a highly accommodative stance for monetary policy,” the Federal Open Market Committee said in a statement released today.
“Economic conditions — including low rates of resource utilization and a subdued outlook for inflation over the medium run — are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014,” according to the statement.
The Fed extended its previous pledge to keep rates low at least until the middle of 2013 as inflation remains tame and more than two years of economic growth have failed to push unemployment below 8.5 percent.
Some Fed officials have said further easing might be needed to put more Americans back to work and revive the housing market.
The Federal Reserve also said it would continue to extend the average maturity of its $2.6 trillion securities portfolio, a move dubbed “Operation Twist.” The Fed also maintained its policy of reinvesting maturing housing debt into agency mortgage-backed securities.
Federal Reserve officials said Wednesday that benchmark interest rates will stay low until at least late 2014, and they anticipate that unemployment will remain high and inflation “subdued,” Bloomberg reported.
“The Committee expects to maintain a highly accommodative stance for monetary policy,” the Federal Open Market Committee said in a statement released today.
“Economic conditions — including low rates of resource utilization and a subdued outlook for inflation over the medium run — are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014,” according to the statement.
The Fed extended its previous pledge to keep rates low at least until the middle of 2013 as inflation remains tame and more than two years of economic growth have failed to push unemployment below 8.5 percent.
Some Fed officials have said further easing might be needed to put more Americans back to work and revive the housing market.
The Federal Reserve also said it would continue to extend the average maturity of its $2.6 trillion securities portfolio, a move dubbed “Operation Twist.” The Fed also maintained its policy of reinvesting maturing housing debt into agency mortgage-backed securities.
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