Fed to Hold Rates Down Until Jobless Rate Is Below 6.5%

[Gerald]

WASHINGTON — The Federal Reserve said Wednesday that it planned to hold short-term interest rates near zero as long as the unemployment rate remains above 6.5 percent, reinforcing its commitment to improve labor market conditions.

The Fed also said that it would continue in the new year its monthly purchases of $85 billion in Treasury securities and mortgage-backed securities, the second prong of its efforts to accelerate economic growth by reducing borrowing costs.

The announcements continued a policy shift that began in September, when the central bank first made clear that it was focused on reducing unemployment, ending decades during which inflation was the Fed’s constant priority.

http://www.nytimes.com/2012/12/13/bu...buying.html?hp

Note: December 12, 2012