The Federal Reserve said Wednesday it sees further signs of improvement in the U.S. economy, but not enough to start raising its key interest rate from near 0% anytime soon.
The Fed’s statement Wednesday once again spoke of a U.S. economy now in recovery, stating that “economic activity has continued to strengthen and that the labor market is beginning to improve.”
But the central bank made little change in its language used to describe the outlook for its policy, saying it expects that economic conditions will “warrant exceptionally low levels of the federal funds rate for an extended period,” as it has at every meeting since June of last year.
The fed funds rate, the central bank’s key overnight lending rate, is a benchmark used to set interest rates on a wide variety of consumer and business lending.
In December 2008, the Fed cut the rate to near 0% in an effort to spur economic activity, and has left it there ever since.
(Read More: CNN Money)
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or in terms we all understand –
the pediatrician says: your child is better, keep taking all these medicines and maybe some day the fever and the cough will go away
if the economy was truely improving, the Federal Reserve Board would stop printing money