Breaking News Alert
The New York Times
Tuesday, August 9, 2011 -- 2:30 PM EDT
Fed to Hold Rates Exceptionally Low Through Mid-2013
The Federal Reserve on Tuesday said that the risk of a downturn in the nationís economy had increased, and that it was prepared to use additional policy tools, including extending its period of exceptionally low interest rates, until at least 2013.
The Fedís announcement was eagerly awaited by investors who have responded to grim economic tidings in recent weeks by driving down global markets.
The economy grew only 0.8 percent during the first half of the year. The work force is shrinking. State and local governments are cutting back. And fiscal policy is immobilized by partisanship, leading Standard & Poorís to remove the United States from its list of risk-free borrowers.
That has left investors to hope that the Fed would consider new steps to help the economy.
http://www.nytimes.com/2011/08/10/business/economy/fed-to-hold-rates-exceptionally-low-through-mid-2013.html?emc=na (external - login to view)