C.A.R. News
Fed leaves key interest rate unchanged
The Federal Reserve today announced it will “maintain the target range for
the federal funds rate at zero to .25 percent, and continues to anticipate
that economic conditions are likely to warrant exceptionally low levels of
the federal funds rate for an extended period.”
“Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing,” the Fed said in a prepared statement. “Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales.
“Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability.
C.A.R. News