The New York Times
by Binyamin Appelbaum

The Federal Reserve announced an unconventional plan on Wednesday to reduce borrowing costs for businesses and consumers, trying once more to spur economic growth despite urgings from Republicans that it refrain from any expansion of its stimulus program. Continue reading…

The New York Times is reporting that the Federal Reserve intends to keep its rates near zero.  Citing job growth and “other economic indicators” the Fed does not predict raising rates in the near future.

“The Federal Open Market Committee, the Fed’s chief policy setting arm, left the fed funds rate at zero to 0.25 percent, where it has been since December 2008.”

Read “Fed to Keep Rates Low for ‘Extended Period’”

According to The New York Times, the Federal Reserve will raise bank interest rates by 25 basis points on Friday.

The Fed emphasized that the increase in the discount rate, to 0.75 percent from 0.50 percent, which will take effect on Friday, did not represent a broad tightening of credit. Instead, officials said, the change was intended to discourage emergency borrowing by banks and other deposit-taking institutions when other financing is available.

Read more HERE