Fed Prepared to Purchase Treasurys, Keep Rates Steady
According to the Wall Street News Alert on Jan. 28, 2009, the Federal Reserve, unable to lower rates further, said it is prepared to purchase long-term Treasurys in order to keep rates low. For more information, please see:http://online.wsj.com/article/SB123316725192925081.html?mod=djemalertNEWS ; For the Fed's statement, please see:http://blogs.wsj.com/economics/2009/01/28/feds-statement-on-rates/?mod=djema
Federal Reserve Press Release (Jan. 28, 2009)
According to the Federal Reserve Press Release, the Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1/4 percent. The Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.
In light of the declines in the prices of energy and other commodities in recent months and the prospects for considerable economic slack, the Committee expects that inflation pressures will remain subdued in coming quarters. Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term.
Posted by Min Young Choi, Associate Editor, Wealth Strategies Journal.
According to the Wall Street News Alert on Jan. 28, 2009, the Federal Reserve, unable to lower rates further, said it is prepared to purchase long-term Treasurys in order to keep rates low. For more information, please see:http://online.wsj.com/article/
Federal Reserve Press Release (Jan. 28, 2009)
According to the Federal Reserve Press Release, the Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1/4 percent. The Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.
In light of the declines in the prices of energy and other commodities in recent months and the prospects for considerable economic slack, the Committee expects that inflation pressures will remain subdued in coming quarters. Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term.
Posted by Min Young Choi, Associate Editor, Wealth Strategies Journal.
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