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28 January 2010
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Fed view improves rates stay near zero
The Wall Street Journal, Asia, Thursday, January 28, 2009
Fed view improves rates stay near zero – The Federal Reserve Wednesday gave a slightly more upbeat reading of the U.S. economy’s outlook , but left short-term interest rates near zero to help support a soft recovery. A day before Chairman Ben Bernanke is expected to face a tough vote in the Senate to win a second term, Kansas City Fed President Thomas Hoenig voted against keeping rates so low. A Fed veteran, Mr. Hoenig is concerned the stimulus pumped to fight the crisis may stoke inflation. The Fed’s policy-setting committee stuck to a plan to end its purchases of mortgage securities by the end of March and let most of its emergency lending programs expire by Feb 1. With the worst of the financial crisis over, the U.S. central bank is gradually removing the huge stimulus pumped into the economy to counter a severe recession before it triggers inflation.
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