The Federal Open Market Committee, at their policy meeting today, decided once again to maintain the target for the federal funds rate at the exceptionally low level of 0% to 0.25%.
The Committee anticipates that the target fed funds rate will remain this low for an extended period of time, given recent slowing in the pace of economic recovery and subdued inflationary trends.
Their statement also indicated that the Fed will maintain current levels of securities holdings by rolling over maturing mortgage backed securities into longer-term Treasuries in an effort to provide additional support to the recovery.
President of the Kansas City Federal Reserve Bank, Thomas Hoenig, was again the one dissenting vote against the policy action today, saying that it limited the Fed’s ability to adjust rates when necessary.
The Committee would like to see some staying power in the economic recovery before removing the exceptionally low rates and relaxed monetary policy.
| < Prev | Next > |
|---|
