TBO.com - TBO is Tampa Bay Online

Fed keeps interest rate low

Staff file photo

The Fed says the housing market also has grown stronger, a key ingredient to a sustained recovery.

ADVERTISEMENT

By JEANNINE AVERSA

The Associated Press

Published: November 5, 2009

With the recession apparently over, the Federal Reserve on Wednesday held a key interest rate at a record low and again pledged to keep it there for an "extended period" to foster the fragile economic recovery.

The Fed said economic activity has "continued to pick up" and that the housing market also has grown stronger, a key ingredient to a sustained recovery. Against that backdrop, the Fed kept the target range for its bank lending rate at zero to 0.25 percent.

Here's a look at the evolution of the Fed's statements on the economy from its three most-recent meetings:

The economy

The Fed on Aug. 12 said "economic activity is leveling out."

The Fed on Sept. 23 said "economic activity has picked up following its severe downturn."

The Fed on Wednesday said "economic activity has continued to pick up."

Financial markets

The Fed on Aug. 12 said conditions in financial markets "have improved further in recent weeks."

The Fed on Sept. 23 said conditions "have improved further, and activity in the housing sector has increased."

The Fed on Wednesday said conditions "were roughly unchanged, on balance, over the intermeeting period ... (and) activity in the housing sector has increased over recent months."

Business sentiment

The Fed on Aug. 12 said businesses "are making progress."

The Fed on Sept. 23 said businesses "are still cutting back on fixed investment and staffing, though at a slower pace; they continue to make progress in bringing inventory stocks into better alignment with sales."

The Fed on Wednesday repeated its Sept. 23rd language.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT