Federal Reserve Says 'Economic Recovery Is Continuing'; Holds Rates Steady
Originally published on Tue December 14, 2010 12:27 pm
Saying that "information received since the Federal Open Market Committee met in November confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment," Federal Reserve policymakers just effectively said they're going to keep trying to give the economy some gas in a bid to get it moving faster.
You can read the FOMC's statement here.
The Fed added that because unemployment (just under 10 percent, officially) is high and inflation appears to be well in check, it will "continue expanding its holdings of securities as announced in November." Translation: the Fed will keep buying Treasury securities in a bid to get more money into the economy.
And, the Fed "will maintain the target range for the federal funds rate at 0 to 1/4 percent." So, short-term interest rates will remain at rock-bottom.
The news is in line with what was expected. And stock market indicators are trending higher at this moment.