FED Keeps Rate at 0.25%
Written December 16, 2009 at 2:39 PM EST by John Teister
The Federal Reserve has kept the FED Funds rate at 0.25%. The FOMC also commented that they will continue to keep rates low for an extended period of time causing the EUR to initially move higher and than push to new lows against the USD after further reading of the statement. Additionally, the FOMC released the following statements:
- The vote was unanimous.
- The slow down in the labor market “is abating”
- TALF expiration dates are unchanged.
- “Substantial” slack to dampen inflation pressure.
- Most liquidity facilities to expire Fed. 1.
- Economy is likely to “remain weak for a time”, but has “continued to pick up”.
- Financial markets are “more supportive” of economic growth.
- Rates will remain “exceptionally low” for an “extended period”.
- The housing sector has shown signs of improvement over recent months.
- Businesses are still cutting back, though at a slower pace; reluctant to add payrolls.
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Absolute wonderful week & last week. Have a great trading week everyone!