Fed leaves rates unchanged
The Federal Reserve announced rates will remain unchanged during the close of the Federal Open Market Committee meeting Wednesday.
The Committee will continue to purchase additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will purchase long-term Treasury securities after the maturity extension program is completed at the end of the month at a pace of $45 billion per month.
"Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative," the report said.
The Committee decided to keep the target range for the federal funds rate at 0 to .25%.
The low range for the federal funds rate will be appropriate as long as the unemployment rate remains above 6.5%. Inflation projections one to two years from now is expected to be no more than half a percentage point above the 2% longer-run goal. Longer term inflation expectations continue to be anchored.
"In determining how long to maintain a highly accommodative stance of monetary policy, the Committee will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments," the report said.