Fed to keep interest rates low until unemployment rate dips below 6.5 percent
The Federal Reserve will spend $45 billion a month to sustain an aggressive drive to keep long-term interest rates low, the AP reported today.
And it says it plans to keep a key-short rate near zero until unemployment drops below 6.5 percent.
The policies are intended to help an economy that the Fed says is growing only modestly with 7.7 percent unemployment in November.
The Fed also kept its target for its benchmark short-term interest rate at a record low near zero, where it has been for four years.
The Fed said today it would link any future rate change to lower unemployment, as long as inflation is expected to stay below 2.5 percent.
Before today, the Fed had said it planned to keep th rate low until at least mid-2015, according to the AP.