Rate: Remains in a range of zero percent to 0.25 percent
The details: There are still more Americans out of work in the U.S. than when the recession began, although the unemployment rate drops to a five-year low of 7 percent. Consumer confidence is on the rise in December as the year ends.
The Fed announces it will begin to taper its stimulus program, cutting monthly asset purchases from $85 billion to $75 billion. It says it will likely keep the low federal funds rate "well past the time" the unemployment rate drops below 6.5 percent.
"The Fed has recognized that the economy is no longer a basket case," said Joel Naroff, president of Naroff Economic Advisors. "But they’re not ready to commit to cutting all the strings. That’s why they’re tapering."
More On The Economy:
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused. We do not permit the inclusion of hyperlinks in comments and may remove any comment that includes a hyperlink.
A bunch of agencies are trying to expand the number of would-be homeowners who can qualify for mortgages. But I'm skeptical that these efforts will help many people.
... Read more