Fed to keep rock-bottom interest rate
WASHINGTON (June 18, 2015) — The Federal Open Market Committee (FOMC) of the Federal Reserve has once again voted to keep a key federal interest rate at near-zero.
“To support continued progress toward maximum employment and price stability, the committee today reaffirmed that the current 0 to 0.25-percent target range for the federal funds rate remains appropriate,” the FOMC said June 17, after its most recent meeting. The federal funds rate is the rate at which banks lend to other banks.
The FOMC will continue to assess progress, both real and expected, toward its goals of maximum employment and 2-percent inflation in determining how long to keep the federal funds rate at near zero, the committee said in a press release.
The committee is also maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities, and also rolling maturing Treasury securities at auction, it said.
Information gathered since the FOMC April meeting suggests that economic activity is experiencing moderate growth, the committee said.