WASHINGTON (MarketWatch) -- The Federal Reserve declared war on Tuesday, promising to do whatever it takes to prevent a depression.
With the economy teetering on the edge of a prolonged slump, the central bank's policy-making Federal Open Market Committee slashed interest rates on Tuesday to near zero, and vowed to use "all available tools" to keep the economy from collapsing into a depression. See full story.
After a two-day meeting in Washington, Bernanke rounded up even the most reluctant members of the FOMC to unanimously endorse the most drastic actions this central bank has ever taken.
To no one's surprise, the Fed said the economic outlook had "weakened further," and it set aside any immediate worries about inflation. For the next while, all of the Fed's focus will be on easing the credit crunch, pumping money through the financial system, and getting the economy growing again.
"The committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time," the statement said.
Read the statement.
With the economy teetering on the edge of a prolonged slump, the central bank's policy-making Federal Open Market Committee slashed interest rates on Tuesday to near zero, and vowed to use "all available tools" to keep the economy from collapsing into a depression. See full story.
After a two-day meeting in Washington, Bernanke rounded up even the most reluctant members of the FOMC to unanimously endorse the most drastic actions this central bank has ever taken.
To no one's surprise, the Fed said the economic outlook had "weakened further," and it set aside any immediate worries about inflation. For the next while, all of the Fed's focus will be on easing the credit crunch, pumping money through the financial system, and getting the economy growing again.
"The committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time," the statement said.
Read the statement.
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