Friday, December 18, 2009

Feds commit to Holding down interest rates

The Federal Reserve said Wednesday that it would keep short-term key interest-rate target between 0 - 0.25 percent for an "extended period" - interpreted by many analysts to mean months.

Officials said in a statement after the close of its December meeting that the economy has "picked up," unemployment is "abating" and financial conditions have "become more supportive of economic growth".

The Feds also said Wednesday that it will complete its purchase of up to $1.25 trillion in mortgage-backed securities by March, a decision that could negatively affect the availability of mortgages.

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