First County Advisors/Wealth Management

Fed’s extended rate pledge boosts stock and bond prices

In the much anticipated announcement from the Federal Open Market Committee’s year end meeting, the Federal Reserve Bank said it will continue to hold interest rates at near zero until late 2014 – nearly a year and a half longer than originally planned! The decision to extend the 0%, they state, is due to economic conditions that necessitate the extension. Stock prices jumped immediately following the announcement. Visit First County Bank’s First Perspectives for more on the effects of the Fed’s extended rate pledge:

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