In a press release on Wednesday, the US Federal Open Committee cited current economic conditions – low rates of resource utilization and a subdued outlook for inflation over the medium run – as reasons to keep a low federal funds rate at least through late 2014.
This follows an August 2011 announcement that interest rates would stay near zero until at least mid-2013.
The Committee expects interest rates will eventually rise to 4.5%, which will help maintain its target rate for inflation of 2%.
This type of announcement is aimed at giving the investing public an idea of longer-term inflation expectations and a clear picture of how long they can obtain cheap credit.
Market Recap (as of Friday, January 27, 2012)
- The TSX closed at 12467, up 0.56% over the past week. YTD the TSX is up 4.28%.
- The DOW closed at 12660, down -0.47% over the past week. YTD the DOW is up 3.62%.
- The S&P closed at 1316, up 0.08% over the past week. YTD the S&P is up 4.61%.
- The Nasdaq closed at 2817, up 1.08% over the past week. YTD the Nasdaq is up 8.14%.
- Gold closed at 1738, up 4.45% over the past week. YTD gold is up 11.05%
- Oil closed at 99.59, up 1.42% over the past week.YTD oil is up 0.70%.
- The CAD/USD closed at 0.999, up 1.14% over the past week. YTD the CAD/USD is up 1.96%.
Source: Dynamic Funds