Fed Reserve Maintains Near 0% Funds Rate
March 16, 2010 at 17:30 UTC || By Forex Playmaker
The Federal Reserve signaled today that it will maintain a near 0% fed funds rate for an extended period. The Financial Times reports on a more optimistic Federal Reserve vis-à-vis the US economy:
The US central bank has given a slightly more upbeat outlook on the country’s economic recovery, saying that the labour market is “stabilising” and business spending on equipment has “risen significantly”.
However, the Federal Reserve on Tuesday signalled no imminent change in its monetary policy stance, with interest rates set to remain at 0-0.25 per cent for an “extended period”.
Bloomberg notes that the fed remains concerned about the overall economic outlook, as the housing market continues to shun recovery:
Federal Reserve officials repeated their pledge to keep the main interest rate near zero for an “extended period” and confirmed that emergency measures to prop up the housing market will end as planned this month.
While the economy has “continued to strengthen,” policy makers noted that “housing starts have been flat at depressed levels” and “employers remain reluctant to add to payrolls.”
View the Federal Reserve’s statement in its purest form: FOMC Statement
