Fed Suggests Its Prepared To Act On Sluggish Economic Growth

09.21.10 | FL News Team

(Washington, DC)  --  The Federal Reserve has signaled it is prepared to take action if necessary to bolster the economic recovery.  Following today's policy meeting, the Federal Open Market Committee also said it is keeping the Fed's benchmark interest rate unchanged at a quarter-of-one percent.  The key Fed Funds rate has been at zero to a quarter-of-one percent since December 2008.  The Fed says it will continue to monitor the economic outlook.  This suggests the Fed may be preparing to do more to keep unemployment from rising and prices from falling.

The nation's central bank expressed concern about the sluggish pace of economic growth.  In recent months, the economic recovery has slowed and the national unemployment rate is at nine-point-six percent, with only tepid hiring in the private sector.  In late August, Fed Chairman Ben Bernanke said the Fed was ready to provide more stimulus if needed in the event the economic outlook deteriorated significantly.