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Fed: No Game Change

The Federal Reserve announced today that it will keep interest rates "exceptionally low...for an extended period," in a continued effort to stimulate an economy that it views as "weak" but "improved." That key interest rate, the federal funds rate, will stay within a target range of 0 to 0.25 percent.

The Fed has been working hard to lower mortgage rates, but some on Wall Street still have concerns. The New York Times reports:

The central bank's caution and the new data highlighted the difficult balancing act that policy makers increasingly face. On the one hand, the economy remains so weak that many policy makers want to keep revving up activity by printing money. On the other, they are under pressure from bond investors, who have signaled growing worry that the Fed's efforts will eventually drive up inflation.

The Fed also reiterated its plan to purchase $1.25 trillion of agency mortgage backed securities and $200 billion of agency debt by the end of the year. It also plans to buy up to $300 billion of Treasury securities "by autumn."

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