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Economy in Brief

FOMC Holds Interest Rates Unchanged
by Tom Moeller  April 27, 2011

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 Fed's assessment of the economic recovery continued favorable. It indicated that "... the economic recovery is proceeding at a moderate pace and overall conditions are improving gradually." Regarding price inflation, the Fed continued to indicate that despite the rise in oil prices, "longer-term inflation expectations have remained stable ..." 

The FOMC will continue expanding its holdings of securities as announced in November. In particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and intends to "complete purchases of  $600 billion of longer-term Treasury securities by the end of the current quarter."

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.

  Current Last 2010 2009 2008
Federal Funds Rate, % (Target) 0.00-0.25 0.00-0.25 0.17 0.16 1.93
Discount Rate, % 0.75 0.75 0.72 0.50 2.39
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