Federal Open Market Committee (FOMC) December 13 Meeting Statement – Stay The Course, Again

The statement following the Federal Reserve Board’s FOMC meeting on December 13 was largely a rerun of the November meeting. The Fed will continue the current policies including keeping the Fed funds target rate in its 0 to 25 basis point range until at least mid-2013, extending the average maturity of its securities holdings, reinvesting principal payments on agency debt and agency MBS in agency MBS, and rolling over maturing Treasury securities at auction.

The statement upgraded the Fed’s assessment of the economy to “expanding moderately” and “some improvement in overall labor market conditions” and repeated the cautions that the unemployment rate will decline “only gradually” and “strains in global financial markets continue to pose significant downside risks to the economic outlook.”

The minutes of the meetings, providing a fuller account, are typically released three weeks after the meeting.

 



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