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Economy in Brief

FOMC Sustains Level of Monetary Accommodation
by Tom Moeller April 25, 2012

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 indicated that the economy may warrant an exceptionally low Fed funds rate at least through late 2014.

The assessment of the economy was unchanged and indicated that there's been moderate improvement. The Fed noted that "labor market conditions have improved" and "household spending and business fixed investment have continued to advance." However, "the housing sector remains depressed."

The Fed stated that "inflation has picked up somewhat, mainly reflecting higher prices of crude oil and gasoline. However, longer-term inflation expectations have remained stable."

"The Committee also decided to continue its program to extend the average maturity of its holdings of securities as announced in September."

The latest press release from the Federal Reserve can be found here and its economic projections are available 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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