The federal open market Committee keeps its target range for the federal funds rate at 0 to 1 / 4 percent. Information received since The Committee met in December suggests that the economy has weakened further. The Committee anticipates that a gradual recovery in economic activity will begin later this year.
The federal open market Committee keeps its target range for the federal funds rate at 0 to 1 / 4 percent. Information received since The Committee met in December suggests that the economy has weakened further. The Committee anticipates that a gradual recovery in economic activity will begin later this year.
The federal open market Committee keeps its target range for the federal funds rate at 0 to 1 / 4 percent. Information received since The Committee met in December suggests that the economy has weakened further. The Committee anticipates that a gradual recovery in economic activity will begin later this year.
The Federal Open Market Committee decided today to keep its target range for the federal The Federal Open Market Committee funds rate at 0 to 1/4 percent. The Committee decided today to establish a target continues to anticipate that economic range for the federal funds rate of 0 conditions are likely to warrant exceptionally to 1/4 percent. low levels of the federal funds rate for some time. Since the Committee's last meeting, Information received since the Committee labor market conditions have met in December suggests that the economy has deteriorated, and the available data weakened further. Industrial production, indicate that consumer spending, housing starts, and employment have continued to decline steeply, as consumers and business investment, and industrial businesses have cut back spending. production have declined. Financial Furthermore, global demand appears to be markets remain quite strained and slowing significantly. Conditions in some credit conditions tight. Overall, the financial markets have improved, in part outlook for economic activity has reflecting government efforts to provide liquidity and strengthen financial weakened further. institutions; nevertheless, credit conditions for households and firms remain extremely Meanwhile, inflationary pressures have tight. The Committee anticipates that a diminished appreciably. In light of gradual recovery in economic activity will begin later this year, but the downside risks the declines in the prices of energy to that outlook are significant. and other commodities and the weaker prospects for economic activity, the In light of the declines in the prices of Committee expects inflation to energy and other commodities in recent months moderate further in coming quarters. and the prospects for considerable economic slack, the Committee expects that inflation pressures will remain subdued in coming The Federal Reserve will employ all quarters. Moreover, the Committee sees some available tools to promote the risk that inflation could persist for a time resumption of sustainable economic below rates that best foster economic growth and price stability in the longer term. growth and to preserve price stability. In particular, the The Federal Reserve will employ all Committee anticipates that weak available tools to promote the resumption of economic conditions are likely to sustainable economic growth and to preserve warrant exceptionally low levels of price stability. The focus of the Committee's policy is to support the functioning of the federal funds rate for some time. financial markets and stimulate the economy through open market operations and other The focus of the Committee's policy measures that are likely to keep the size of going forward will be to support the the Federal Reserve's balance sheet at a high level. The Federal Reserve continues to functioning of financial markets and purchase large quantities of agency debt and stimulate the economy through open mortgage-backed securities to provide support market operations and other measures to the mortgage and housing markets, and it that sustain the size of the Federal stands ready to expand the quantity of such Reserve's balance sheet at a high purchases and the duration of the purchase program as conditions warrant. The Committee level. As previously announced, over also is prepared to purchase longer-term the next few quarters, the Federal Treasury securities if evolving circumstances Reserve will purchase large quantities indicate that such transactions would be of agency debt and mortgage-backed particularly effective in improving conditions in private credit markets. The Federal Reserve securities to provide support to the will be implementing the Term Asset-Backed mortgage and housing markets, and it Securities Loan Facility to facilitate the stands ready to expand its purchases extension of credit to households and small of agency debt and mortgage-backed businesses. The Committee will continue to securities as conditions warrant. The monitor carefully the size and composition of the Federal Reserve's balance sheet in light Committee is also evaluating the of evolving financial market developments and potential benefits of purchasing to assess whether expansions of or longer-term Treasury securities. Early modifications to lending facilities would next year, the Federal Reserve will serve to further support credit markets and economic activity and help to preserve price also implement the Term Asset-backed stability. Securities Loan Facility to facilitate the extension of credit to households and small businesses. The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity.