Real-Time Quote
US News
Page 1 of 4 | Next Page
Show Entire Article

New Hawks and Doves at Fed Likely Won't Alter Policy
The Associated Press | January 30, 2013 | 09:01 AM EST

The cast of voting members on the Federal Reserve 's policy committee is changing this year. Their policies probably won't be.

Chairman Ben Bernanke will likely retain a solid majority on the 12-member committee for his drive to keep interest rates low well into the future despite critics who worry about the risks. (Read More: Bernanke: 'We're Not Out of the Woods' )

As the committee meets for the first time this year, Bernanke and the six other members of the Fed's board in Washington will keep their votes. So will William Dudley, president of the Federal Reserve Bank of New York. All have permanent votes. But among the presidents of the 11 other Fed regional banks, four are losing votes and four are gaining them.

On Wednesday, when the Fed issues a statement after its two-day policy meeting, economists expect it to affirm that it expects to keep short-term rates near zero until unemployment dips below 6.5 percent from the current 7.8 percent. It will also likely say it will keep spending $85 billion a month on bond purchases until the job market improves "substantially."

The Fed's goal is to keep borrowing costs low to stimulate spending and economic growth.

Page 1 of 4 | Next Page
Show Entire Article
Real-Time Quote
omniture pixel