Financial Times FT.com

Fed lets easing take effect

By Krishna Guha in Washington

Published: June 24 2009 23:48 | Last updated: June 24 2009 23:48

The Federal Reserve is on hold – but it expects quite a long time to pass before it starts raising interest rates again. That is the basic message from Wednesday’s statement.

The central bank did not increase its planned asset purchases, which amounts to no additional easing. However, it simultaneously rebuffed market expectations of early rate increases, saying it “continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period”.

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