Fed Keeps Rates Alone, Upbeat about The Economy

by ritasimpson on December 14, 2011

in Latest News

Federal Reserve reaffirmed its pledge to keep interest rates low, saying the economy has already been showing signs of “expanding moderately.” The economy has shown some improvement in employment and consumer spending in recent weeks.

In reaffirming a pledge it first issued in August, the Fed said the federal funds rate will remain near zero until mid-2013. The Fed said it will continue with plans to move $400 billion of its bond portfolio into longer-term securities, which ultimately could send long-term interest rates even lower.

Overall, the Fed said the economy has steadily been showing signs of improvement and is on track to post its strongest gains of the year in the final months of 2011. But the Fed said that the European debt crisis will continue to pose a major threat to recovery with “strains in global financial markets continue to pose significant downside risks.” More on this

 

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