The Federal Reserve announced Wednesday that it will keep the target federal funds rate at 0 to 0.25 percent through 2014, amid an economy growing only moderately.
The Federal Open Market Committee, the Fed’s policy-making arm, said in a press release it left its policy unchanged and that it expects “economic growth to remain moderate over coming quarters and then to pick up gradually.”
The Fed cited headwinds from the European debt crisis and said a recent pick-up in inflation is likely temporary.
In a press conference following the FOMC’s rate decision, Fed Chairman Ben Bernanke said low interest rates won’t stick around forever, but they’re necessary for continued stabilization amidst recent financial headwinds.
“Interest rates will rise at some point,” Bernanke said in response to a question about the future course of market rates. “We hope that they do because that will be an indication that the economy is strengthening.”
Click below to see a replay of MMM’s live coverage of the event:
No policy change from Fed Reserve