Fed Vows To Keep Rates Low Again

The Federal Reserve today announced that it will maintain the target range for the federal funds rate at 0 to 1/4 percent as it continues to anticipate economic conditions that are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

The decision to hold rates steady was 9-1. Voting against the policy action was Thomas Hoenig, who believed that economic and financial conditions had changed sufficiently that the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted.