Friday
April 25, 2014
Tuesday, August 9, 2011

Fed promises to keep rates low for at least 2 years

The Federal Reserve said it will keep its hefty monetary policy stimulus for at least another two years, an effort to support a flagging economy and fragile global markets that faced considerable internal dissent.

It was unclear whether the decision, which involved no new committment of funds for bond purchases, would be enough to put a floor on a US stock market that has fallen more than 15 percent in the last two weeks. 

The Fed said US economic growth was proving considerably weaker than expected, suggesting inflation, which has already moderated recently, will remain contained for the foreseeable future. 

Three officials, Richard Fisher of the Dallas Fed, Narayana Kocherlakota of Minneapolis and Charles Plosser of Philadelphia, voted against the move.

"The committee currently anticipates that economic conditions - including low rates of resource utilization and a subdued outlook for inflation over the medium run - are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013," the US central bank said in a statement.

 

It also reiterated its policy of reinvesting the proceeds from bonds maturing in its portfolio, though it did not state a specific time frame for such actions.

 

 

 

 

  • CommentComment
  • Increase font size Decrease font sizeSize
  • Email article
    email
  • Print
    Print
  • Share
    1. Vote
    2. Not interesting Little interesting Interesting Very interesting Indispensable
Tags:  Fed  statement  meeting  


  • Comment
  • Increase font size Decrease font size
  • mail
  • Print

COMMENTS >

Comment



Grupo ámbito ámbito financiero ambito.com Docsalud AlRugby.com Premium El Ciudadano El Tribuno Management

Director: Orlando Mario Vignatti - Edition No. 4110 - This publication is a property of NEFIR S.A. - RNPI Nº 5099332 - Issn 1852 - 9224 - Te. 4349-1500 - San Juan 141 , (C1063ACY) CABA