FOMC Leaves Rates Unchanged

by Marilou Long on June 24, 2009

in Credit Crisis,Economic Indicators

The Federal Open Market Committee (FOMC) left rates unchanged today after their scheduled meeting.

The first paragraph of the statement reads:

“Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing. Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales. Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability. “

The statement also says that the Federal Reserve will continue to purchase agency mortgage-backed securities and agency debt, but it did not increase the amount.

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