The Federal Open Market Committee (FOMC) has decided to establish a target range for the federal funds rate of 0% to 0.25%.
The FOMC says that since its last meeting, labor market conditions have deteriorated, and available data indicate that consumer spending, business investment and industrial production have declined. Financial markets remain quite strained, and credit conditions are tight. Overall, the outlook for economic activity has weakened further.
Meanwhile, inflationary pressures have diminished appreciably. In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the FOMC expects inflation to moderate further in coming quarters.
The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. In particular, the committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.
Source: Federal Open Markets Committee