LISTEN LIVE KPR - On Air: Listen Live to classical, jazz and NPR news Schedule LATEST
NEWSCAST
KPR 2 - On Air: Listen live to KPR's all talk-radio service, KPR2 Recordings

Share this page              

Federal Reserve Holds Interest Rates Steady

A television screen on the floor of the New York Stock Exchange shows the rate decision of the Federal Reserve on Wednesday.

Following a two-day Fed meeting in Washington, D.C., Federal Reserve policymakers say they'll keep their benchmark rate in a range between one and 1.25 percent for the time being.

Fed officials said "job gains have been solid" and the U.S. "labor market continues to strengthen," in the statement following a meeting of the Federal Open Market Committee, or FOMC.

The officials described economic activity as "rising moderately." They noted that unemployment rate has declined since the beginning of the year. The Fed is close to meeting its mandate to maximize employment.

However, officials also noted today that inflation is running below the 2 percent target they think is best for supporting economic growth. Concern about lagging inflation could pressure the Fed to hold rates lower for a longer period of time.

Fed officials also said that they plan to begin selling off some of the securities on their huge balance sheet "relatively soon." The Fed bought trillions of dollars in government bonds and mortgage-backed securities after the financial crisis, injecting money into the economy in an effort to boost growth. During that time the total value of securities on the Fed's balance sheet rose from under $900 billion dollars to over $4.5 trillion dollars.

Analysts expect the Fed will begin the process of selling those securities this fall. However, the sell-off will happen over a period of years. Dumping the securities on the market rapidly could destabilize financial markets and harm the economy.

Copyright 2017 NPR. To see more, visit http://www.npr.org/.

Tower Frequencies

91.5 FM KANU Lawrence, Topeka, Kansas City
96.1 FM K241AR Lawrence (KPR2)
89.7 FM KANH Emporia
99.5 FM K258BT Manhattan
97.9 FM K250AY Manhattan (KPR2)
91.3 FM  KANV Junction City, Olsburg
89.9 FM K210CR Atchison
90.3 FM KANQ Chanute

See the Coverage Map for more details

Contact Us

Kansas Public Radio
1120 West 11th Street
Lawrence, KS 66044
Download Map
785-864-4530 (Main Line)
888-577-5268 (Toll Free)
contact@kansaspublicradio.org