In a move meant to ease uncertainty in the markets, the Federal Reserve pledged to keep interest rates low for the next two years. The Fed’s target rates, which banks use to set loan rates, have been close to zero since 2008, and previously said they would stay there for “an extended period.” The two-year designation is a sign that the Fed expects the economy to remain in troubled waters until at least 2013.
The AP reports the Fed’s move could help the stock market because it will keep bond rates low and unattractive to investors.
Stocks soar after Fed pledges low rates into ’13 [AP via Yahoo Finance]
Previously: Stocks Up After Days Of Bleeding