Fed keeps low rate to late 2014

The Federal Reserve pledged to hold interest rates low until late 2014. The Wednesday pledge is opening a new era of transparency,

The new commitment replaces the statement that economic conditions were likely to keep rates at the historic low range of 0% to 0.25% until at least mid-2013. The Fed made no policy steps, leaving the Fed’s key interest rate where it has been for three years.

In making the new projection, the central bank said the low rate of resource utilization and the subdued outlook for inflation over the medium term are likely to warrant the low rates for almost two more years.

Advertisement