Sep 17, 2014
By Michael Kramer
There’s an important signal from the U.S. Federal Reserve that it’s plannning to keep a key interest rate at a record low level – for a considerable period of time.
That’s because a broad range of American economic signposts remain sub-par.
The Fed says it will keep its benchmark rate near zero – as long as inflation remains under control.
And the rate won’t change until the central bank sees consistent gains in wage growth, long-term unemployment and other measures of the job market.
The Fed is due to end monthly bond purchases at its next meeting in October.
In a statement at the close of its latest policy meeting, the Fed says it will make another $10-billion-dollar cut in the pace of its purchases – which have been intended to keep rates low for long-term borrowers.