The Fed continues to maintain zero to 0.25% lowest interest rate history

United States Federal Reserve Board 23 may decide to continue the federal funds rate that banks interval night offered rate remained at zero to 0.25% minimum level of history, and reiterated the need to use all available tools to promote economic recovery and ensure price stability.

The fed at the end of the day of a two-day monetary policy decision issued a statement after the meeting, said that since the Fed since August meeting, the United States economic activity has accelerated, further improvements in the financial market situation, the real estate market trends and consumer tends to be more stable but still affected by unemployment, income growth is slow, real estate wealth, glycidyl and credit stress factors. Although the pace has slowed, but the enterprise continues to reduce fixed investment and layoffs. Therefore, the Fed believes that in future some time United States economy remains weak, inflationary pressures will be temporarily.

The Fed said the United States economy is likely to need a longer period of time to maintain low levels of the federal funds rate.

In addition to maintaining the federal funds rate unchanged, the Fed also announced that adjustments to promote the home loans market liquidity plan implementation deadline. The Fed was originally scheduled to be completed before the end of the year from premises and Fannie Mae Mortgage agencies, such as purchase totals 1.45 trillion in mortgage-backed securities or debt scheme, now is the time to complete the purchase plan was postponed to the end of the first quarter of next year.

It is reported that up to now, the Fed has been purchased from the mortgage agencies about 7750 billion of mortgage loan debt or debt. Analysts believe that due to the purchase of mortgage loan debt or debt amounted unchanged fed to extend the time for carrying out purchase means lower on the mortgage market in terms of, this reflects the fed on the momentum of economic recovery in the United States continued to hold a certain confidence.

In response to the financial crisis and economic recession, the Fed since September 2007, started lowering interest rates from 5.25 per cent to the current zero to 0.25%.