Fed to Hold Rates Down Until Jobless Rate Is Below 6.5%
The Federal Reserve said Wednesday that it would maintain its efforts to revive the economy in the new year by continuing its monthly purchases of $85 billion in Treasury bonds and mortgage-backed securities.
The Fed said it would keep buying bonds until the outlook for the labor market improves substantially, reiterating a policy it first announced in September.
Looking even further into the future, the Fed said that it expected to maintain short-term interest rates near zero, even after it stops buying bonds, for as long as the unemployment rate remained above 6.5 percent, provided that medium-term inflation does not exceed 2.5 percent. The November jobless r ate was 7.7 percent.
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http://www.nytimes.com/2012/12/13/business/economy/fed-to-maintain-stimulus-bond-buying.html?emc=na
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