Fed: Rates to remain low 'for some time'

The Fed will try to create asset inflation through a zero interest rate policy and explosion of the money supply.-Lou

Fed: Rates to remain low 'for some time'

The following statement was posted on the Federal Reserve Web site on January 28, 2009:

The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1/4 percent. The Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.

Information received since the Committee met in December suggests that the economy has weakened further. Industrial production, housing starts, and employment have continued to decline steeply, as consumers and businesses have cut back spending. Furthermore, global demand appears to be slowing significantly.

Conditions in some financial markets have improved, in part reflecting government efforts to provide liquidity and strengthen financial institutions; nevertheless, credit conditions for households and firms remain extremely tight. The Committee anticipates that a gradual recovery in economic activity will begin later this year, but the downside risks to that outlook are significant.

Read Full Fed Statement:
http://finance.yahoo.com/news/Fed-Rates-to-remain-low-for-cnnm-14184365.html