Unformatted text preview: Briefly, what was the justification for that decision? (Do not plagiarize.) Though at a slower rate, the economy has continued to contract. Spending remains low, unemployment is still high, and housing prices are still declining. Both domestic and international markets remain weak. As a result, the threat of inflation reamains low. The committee has set a target rate at 0 to .25 percent and expects to keep rates low for an extended period of time. Their justification is that the low rate, along with other measures, will help stablize prices and make for a healthier recovery through the recession....
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- Spring '09
- Monetary Policy, Federal Reserve System, Federal Reserve Board, Federal Open Market Committee