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Economy in Brief

FOMC Holds Interest Rates Unchanged With No Hint Of Tightening
by Tom MoellerApril 28,2010

As expected, the Federal Open Market Committee today left the Federal funds rate in a "range from 0 to 1/4 percent." The Fed funds rate has remained unchanged since late-2008 at its lowest level ever. The discount rate also was left unchanged at 0.75%.

The FOMC statement regarding the economy remained the same. "Information received since the Federal Open Market Committee met in December suggests that economic activity has continued to strengthen and that the labor market is beginning to improve."

Regarding inflation the statement remained succinct. "With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time."

Finally, the Fed left little-changed its prior comments on the improved functioning of financial markets. Moreover, one board member indicated "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."

A complete text of the Fed's latest press release can be found here.

The Haver databases USECON, WEEKLY and DAILY contain the figures from the Federal Reserve Board.

Simple and robust rules for monetary policy from the Federal Reserve Bank of San Francisco can be found here.

  Current Last 2009 2008 2007
Federal Funds Rate, % (Target) 0.00 - 0.25 0.00 - 0.25 0.16 1.93 5.02
Discount Rate, % 0.75 0.75 0.50 2.39 5.86
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