Saying that the economy is “leveling out,” the Federal Reserve Board’s Open Market Committee announced today that it is leaving target range for the federal funds rate at 0.00% to 0.25%.
“Conditions in financial markets have improved further in recent weeks. Household spending has continued to show signs of stabilizing but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit,” the FOMC said following its regularly scheduled two-day meeting.
The panel also said that “economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”
The Federal Funds Rate is the rate depository institutions charge other depository institutions to borrow funds they have on deposit at the Fed and it is a rate used as a basis for other interest rate determinations.