Source / Courtesy: Yahoo News
NEW YORK (CNNMoney) — The Federal Reserve painted a much gloomier picture of the economy Tuesday, and indicated it would keep cash cheap and easy for at least two more years.
Following its fifth policymaking meeting of the year, the central bank also surprised Wall Street with several dramatic changes to its official statement.
Interest rates: The Fed indicated it plans to keep “exceptionally low” interest rates in place until at least mid-2013 as a way to continue to prop up the recovery.
The federal funds rate is the central bank’s key tool to spur the economy and a low rate is thought to encourage spending by making it cheaper to borrow money.