Fed To Keep Rates The Same

In a recent release by the Federal Reserve, the lending  rate’s will remain the same.  Rates will remain unchanged for an extended period and specified for the first time that policy will stay unchanged as long as inflation expectations are stable and unemployment fails to decline.  The Fed’s also said “Household spending appears to be expanding, but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth and tight credit.”  The rate has not changed since last December and Ben Bernanke is trying to determine when the revovery is strong enough to withdraw the 1$ trillion the fed injected to avert  a depression. The dollar declined as the Fed’s statement, which followed a report last week showing the economy expanded last quarter for the first time in more than a year, signaled growth alone won’t be enough to warrant tighter policy.  The economic forcast by many indicate  that we may see the same trends untill mid 2010 to late 2010.