Wednesday, the Federal Reserve announced it would continue to fulfill its promise to maintain record-breakingly low interest rates until further notice in order to encourage economic recovery and reduce unemployment.
The bank was not entirely unified on this decision with some outliers dissenting from the decision and insisting that after nearly a year, the economy is stable enough to discontinue the near zero rates.
Economic support programs focusing on lowering mortgage rates and improving housing will remain firmly in place though for an undisclosed amount of time.
Though it remains fragile, the economy is improving and the next step for the Fed will be to determine when they can begin reeling in the government programs and stimulus money introduced at the height of the crisis.
In the Federal Reserve’s first meeting of 2010, the policy makers are expected to be discussing such things and to reveal any conclusions and decisions on policy at the close of the two day session.
For the time being significant changes in rates or economic support would come as a surprise. Instead the meeting is anticipated to reveal the time line and strategy for the retraction.
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