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.
"The Committee continues to expect a moderate pace of economic growth over coming quarters and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate," the Federal Reserve said in a statement.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
"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
-
-
Survive a financial nuclear winter
The “cockroach portfolio” is as hardy as the indestructible insect it is named after, says Dominic Frisby
-
NatWest-owned Ulster bank boosts easy access savings rate to 5.2%
Rates on easy access savings accounts have hit over 5%, with Ulster Bank now giving savers the chance to earn 5.2% on their cash savings. We have all the details.
