February 1st brings some good news already. The Federal reserve as expected has held the interest rates steady today as they begin to assess where our economy heading-but they hinted that the rates might stay low for a good while to come.
The Fed’s decision today confirmed those expectations.
“In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1/2 to 3/4 percent,” the Federal Open Market Committee said in a statement. “The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation.”
The FOMC also said that it expects economic conditions to evolve in a way that will warrant “only gradual increases” to the federal funds rate in the immediate future. The rate, the committee said, “is likely to remain, for some time, below levels that are expected to prevail in the longer run.”
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-Valley West Mortgage