Hot News from the Feds!

The Fed’s announcement released today was different from past announcements, with the Fed calling for a targeted range for the Fed Funds Rate of between 0.00% and 0.25%.

The Fed’s announcement was unanimous, which was not expected at the start of the meeting.

In addition to lowering rates, the Fed made several additional statements in addressing the economy and their future direction. The Fed stated, that it is prepared to keep interest rates at these low levels for some time, and that they are also prepared to move to stimulate the economy through the open market by increasing their balance sheet to high levels and expanding their plan to acquire both Agency and Mortgage Backed Securities as conditions warrant.

There was also a statement that the Fed will evaluate acquisition of long term Treasuries, but the definition of “Long Term” could be 2, 5 or 6 year bonds, not necessarily 30year.