Reviving the Economy in 2013

4what National News, National Real Estate Info

Per the New York Times, the Federal Reserve will be holding rates down until the jobless rate is below 6.5%.  November jobless rate was at 7.7 percent.  They will be maintaining their efforts to revive the economy in the New Year by continuing their monthly purchases of $85 billion in Treasury bonds and mortgage-backed securities.  The plan is to continue buying bonds until the outlook of the labor market improves substantially, reiterating a policy that was first announced back 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%, provided that medium-term inflation does not exceed 2.5 percent.