Though the economy is recovering and the labor market is improving, the economy is still hurt by high unemployment and modest income growth. Those problems are the reason the Federal Reserve cited when it announced today it was keeping interest rates unchanged.
|The Fed's Open Market Committee voted 9-1 to keep the target federal funds rate, the one banks use when lending to each other, at 0% to 0.25%.
|According to a statement, the committee said "the pace of the recovery is likely to be moderate for a time," and inflation is "likely to be subdued for some time." As was the case last two times the committee met, Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, was the sole no vote and he said the economy was improving and keeping rates low for an extended period could cause a lead up to future imbalances and risks long-term financial stability, according to a news release from the Fed.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
