Fed Affirms Interest Rate Pledge

The Federal Reserve wrapped up its meeting in Washington today with a pledge to keep interest rates “exceptionally low” for an “extended period of time”. As such, the Fed voted to maintain the benchmark overnight lending rate between banks in a range of zero to 0.25 percent.

The Fed also released a statement noting that inflation will “remain subdued for some time” but overall, the economy is strengthening.

[mserve id=”Central_Bank_FED.jpg” align=”left” width=”400″ caption=”US Federal Reserve ” alt=”US Federal Reserve Fed” title=”US Federal Reserve”]

“Household spending appears to be expanding at a moderate rate, though it remains constrained by a weak labor market, modest income growth, lower housing wealth, and tight credit,” the Federal Open Market Committee said in a statement today after meeting in Washington. “Businesses are still cutting back on fixed investment” and “remain reluctant to add to payrolls.” Deterioration in the labor market is “abating.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.