This is good news if you are borrowing money over the next 2 years! See the press release below
Please let me know if you have any other questions or require further information.
Data Release: FOMC maintains the status quo, provides no sign of further
The Federal Open Market Committee decided today to keep the target range for
the federal funds rate unchanged at 0.0% to 0.25% at least through
late-2014. The Committee also decided to continue its program to extend the
average maturity of its holdings of securities - "operation twist".
Supporting their decision, FOMC members noted that, despite the recent
decline in the unemployment rate, unemployment remains high and they still
expect it to gradually decline towards levels consistent with the Fed's dual
They also characterized the economic outlook as one of "moderate" economic
growth and "temporary" higher inflation caused by the recent spike in crude
oil and gasoline prices.
Moreover, committee members acknowledged the easing of global financial
markets strains, but reaffirmed their concern that those strains continue to
pose significant downside risks to the economic outlook.
Jeffrey Lacker once again expressed his disagreement with the after-meeting
communiqué. In particular, Mr. Lacker does not share the view that economic
conditions are likely to warrant exceptionally low levels of the federal
funds rate through late-2014.
At its previous meeting in late-January, FOMC members had decided to extend
the conditional commitment to low interest rates from mid-2013 to the
current late-2014 stated date. In addition, they had provided clarification
on how the FOMC interprets its dual mandate of price stability and maximum
employment. Lastly, to further enhance the Fed's communication strategy,
they had released interest rate projections from all committee participants.
Given this precedent, there was very little expectation heading into today's
meeting that the after-meeting communiqué would deliver anything more than
what it actually did.
Recently there has been some speculation about the possibility that the Fed
could engage in "sterilized" bond purchases as a way to keep a lid on
interest rates while avoiding a potential inflationary expansion in money
supply. The recent improvement in labor market data, combined with the rise
in gasoline prices observed since the FOMC last met certainly did not set
the ground for any mention of further monetary stimulus in today's
o see if that discussion actually occurred at today's meeting, we will have
to wait until the Fed releases the minutes on April 4th.
I hope this finds you Happy and Healthy!
All the Best!
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
FAX 905-828-2829 CELL 416-520-1577
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