The Fed decided today to keep the target range for the federal funds rate at between 0 and 1/4 percent. In a report released earlier, the Federal Reserve stated that they intend to keep the rate at these unprecedented lows “for some time.”
. . . credit conditions for households and firms remain extremely tight. The Committee anticipates that a gradual recovery in economic activity will begin later this year, but the downside risks to that outlook are significant. (Federal Reserve Board, 1/28/09)
For a more detailed analysis, see CNN’s article on how the Central Bank intends to get credit flowing and the economy moving.
