The Fed Announced That It Would Keep Ultra-Low Interest Rates At Least Until Mid 2013.

The Federal Reserve announced on 9 may the federal fund.

The Federal Reserve issued a statement after a regular meeting on monetary policy held on the same day, pointing out that the recovery rate of the US economy was significantly lower than that of the Federal Reserve. The labor market has deteriorated in recent months, and the consumption desire of residents is weak, and the real estate industry is still weak.

The statement said that the United States in the next few quarters

The Fed announces that the US Federal Reserve will keep the federal funds rate at a low level of zero to 0.25% at least until the middle of 2013, given the low capacity utilization rate in the US and the low inflationary pressure in the medium term.

In order to cope with the financial crisis and stimulate economic recovery, since December 2008, the Federal Reserve has kept the federal funds interest rate at a historical low of zero to 0.25%.

The Fed said it will continue to expire.

Beijing time on August 10th morning, after the two day policy conference was closed, the Federal Open Market Committee (hereinafter referred to as "FOMC") issued a statement of interest rate policy today.

At this meeting, FOMC decided to keep the benchmark interest rate unchanged, in line with the broad market expectations.

FOMC also said it was expected that the committee had reason to maintain the federal funds rate at an extremely low level until at least mid 2013.

The full text of the statement is as follows:

Information confirmation since the FOMC6 policy formulation conference showed that the growth rate so far this year is much lower than that of FOMC.

A number of indicators indicate that the overall job market situation has deteriorated in recent months and the unemployment rate has risen.

Household spending has leveled off, investment in non residential housing is still weak, housing sector is still in a state of inhibition, but spending on equipment and software continues to grow.

The declining effects of rising food and energy prices on consumers' purchasing power, as well as temporary factors such as supply chain disruption related to the tragic events in Japan (the great earthquake and tsunami disaster), seem to play only part of the recent weakness in economic activity.

Inflation increased earlier this year, mainly reflecting the rise in prices of certain commodities and imported goods and disruption of supply chains.

Recently, inflationary pressures have eased somewhat because the price of energy and some commodities has dropped from the previous high.

Longer-term inflation expectations have remained stable.

FOMC is seeking to nurture the greatest degree of employment and price stability on the basis of its statutory mission.

FOMC now expects that the pace of economic recovery in the next few quarters will be somewhat higher than that of the previous monetary policy conference, and it is expected that unemployment will only gradually decline towards FOMC's level of double mission.

In addition, downside risks to the economic outlook have been enhanced.

FOMC also predicts that inflation will stabilize in the next few quarters in line with the dual mission of FOMC or below this level, because the impact of rising energy and other commodity prices will further dissipate in the past, but FOMC will pay close attention to the progress of inflation and inflation expectations.

In order to promote the ongoing economic recovery process and help ensure that inflation in the long term meets FOMC's mission, FOMC today decided to keep the federal funds rate unchanged from 0 to 0.25% of the target area.

FOMC now expects that the low level of resource utilization and the prospect of inflation suppressed in the medium term are likely to make FOMC justification for maintaining the federal funds rate at an extremely low level until at least mid 2013.

FOMC will also maintain an existing policy to reinvest the principal payments from the bonds held.

FOMC will regularly review the size and composition of its holdings of bond assets and make preparations for making adjustments at the right time.

FOMC can be used to discuss the scope of policy instruments to promote economic recovery in a stable price environment.

FOMC will continue to evaluate the economic prospects based on future information and prepare for the use of these tools at the right time.

The members who voted for FOMC monetary policy action at the policy making conference are: Chairman Ben Bernanke (Ben S.Bernanke), vice chairman William Dudley (William C. Dudley), Elizabeth Duke (Elizabeth A. Duke), Charles Evans (Charles L. Evans), Evans - - - (-), (-) - and (-).

Members who voted against FOMC monetary policy include: Richard Fisher (Richard W. Fisher), Narayana Kocherlakota (Narayana Kocherlakota) and Charles propo (Charles I. Plosser). They prefer to continue to describe the economic situation as likely to cause FOMC to maintain the federal funds rate at a very low level for a long time.