It looks as though interest rates will remain low for the next two years. At their January meeting, members of the Federal Open Market Committee not only kept the target federal funds rate between 0 and 1/4 percent, they, as a group, projected the next rate increase would likely not come until 2014 at the earliest. They also set the inflation target at 2%.
Here is a look at the Fed's projections for GDP and unemployment:
At his press conference following the meeting, Ben Bernanke noted that the Fed needs to remain open to measures to "provide further stimulus" if the pace of recovery slows:
Read the FOMC January statement here.
Posted
01-26-2012 8:15 AM
by
Graham Griffith
Filed under: jobs, Federal Reserve, Quantitative Easing, interest rates, monetary policy, ben bernanke, GDP, inflation, FOMC, Federal Open Market Committee, projections, federal funds target rate