Nevada’s Economy: Why U.S. Monetary Policy Remains Easy

Nevada's Economy- Why U.S. Monetary Policy Remains Easy

On January 25, 2012, the Federal  Open  Market Committee (FOMC) announced that it decided “to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions—including low rates of resource utilization and a subdued outlook for inflation over the medium run—are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”

Committee members are divided about the exact targets that will need to be sustained over the next few years, but the range of opinion includes federal funds rates that would maintain the stance of U.S. monetary policy about where it has been in place since 2009. With U.S. economic conditions improving, why are some committee members expecting the necessity of holding federal funds rates at such low levels for a prolonged period?


Read the Entire Report

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>