Federal Reserve to keep rates close to zero until 2013

The Federal Reserve has reiterated its plans to keep rates close to zero until mid-2013, saying it "seeks to foster maximum employment and price stability".

The Federal Reserve has reiterated its plans to keep rates close to zero until mid-2013, saying it "seeks to foster maximum employment and price stability".

Consequently, the Committee will maintain its target range for the federal funds rate between 0 and 1/4%, saying it expects that economic conditions are unlikely to warrant exceptionally low levels for the federal funds rate between now and mid-2013.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to continue its program to extend the average maturity of its holdings of securities as announced in September."

NR

MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.