The urgency of this is much more pressing than the prior bailout
The problem and concern is the (mis)management of either.
Listen for a hissing sound?
DJ Text Of Federal Reserve's Interest Rate Decision
NEW YORK (Dow Jones)--The following is the text of the Federal Reserve's decision on interest rates released Wednesday, Jan. 28:
The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1/4 percent. The Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.
Information received since the Committee met in December suggests that the economy has weakened further. Industrial production, housing starts, and employment have continue to decline steeply, as consumers and businesses have cut back spending. Furthermore, global demand appears to be slowing significantly. Conditions in some financial markets have improved, in part reflecting the government efforts to provide liquidity and strengthen financial institutions; nevertheless, credit conditions for households and firms remain extremely tight. The Committee anticipates that a gradual recovery in economic activity will begin later this year, but the downside risks to that outlook are significant.
In light of the declines in the prices of energy and other commodities in recent months and the prospects for considerable economic slack, the Committee expects that inflation pressures will remain subdued in coming quarters. Moreover, the Committee sees some risk tat inflation could persist for a time below rates that best foster economic growth and price stability in the longer term.
The Federal Reserve will employee all available tools to promote the resumption of sustainable economic growth and to preserve price stability.
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(END) Dow Jones Newswires
January 28, 2009 14:15 ET (19:15 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.- - 02 15 PM EST 01-28-09 |
