RateAPY

Feds Leave Interest Rates Unchanged

Posted by: RateAPY Bank Rates News
December 16th, 2009

The Federal Reserve’s monetary policy-making body, the FOMC, released a statement after its most recent two-day meeting. Today’s press release says, “The Committee will maintain the target range for the federal funds rate at 0 to 1/4% and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.” The press release also says that economic activity has been picking up, and that unemployment seems to be stabilizing.

Today’s FOMC decision means that interest rates on savings accounts, money market accounts, and certificates of deposit are likely to remain at current levels a while longer. The fed funds rate has been in the current range for over a year. Some analysts believe interest rates will begin to move higher in 2010.