CNN BUSINESS | Fed pledges to keep interest rates near zero for years
New York (CNN Business) – The Federal Reserve committed
Wednesday to do more to help the US economic recovery, promising more asset
purchases and lower interest rates for even longer than it previously
expected.
The Federal funds rate remained unchanged at zero to a quarter percentage
point, and will stay there until America’s labor market has recovered “consistent
with the Committee’s assessments of maximum employment” and the inflation
rate has risen to 2%, and is on track to exceed that level for some time.
Given the country is still down 11.5 million jobs since February and the consumer price inflation rate over the past 12 months
stood at 1.3% last month, this seems like a long way off. —more—
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