The Fed Leaves Fed Funds Rate Unchanged
The Federal Reserve said they are going to buy mortgage-backed securities in a big way which will keep interest rates low and maybe move them even lower. According to The Wall Street Journal today, the Federal Reserve, unable to lower rates further, said it is prepared to purchase long-term Treasurys in order to keep rates low. “The economy has weakened further,” the Federal Open Market Committee said, adding that conditions “are likely to warrant exceptionally low levels” on fed funds “for some time.”
The Fed kept its target on the federal-funds rate at a record-low range of 0% to 0.25%. Central bankers said they are committed to keeping rates at low levels for some time in order to combat a worsening recession and a deflationary spiral of falling employment and spending.