"The Federal Open Market Committee decided today to keep
its target range for the federal funds rate at 0 to 1/4 percent. The
Committee continues to anticipate that economic conditions are likely
to warrant exceptionally low levels of the federal funds rate for some
time. Information received since the Committee met in December suggests that
the economy has weakened further. Industrial production, housing
starts, and employment have continued to decline steeply, as consumers
and businesses have cut back spending. Furthermore, global demand
appears to be slowing significantly. Conditions in some financial
markets have improved, in part reflecting government efforts to provide
liquidity and strengthen financial institutions; nevertheless, credit
conditions for households and firms remain extremely tight. The
Committee anticipates that a gradual recovery in economic activity will
begin later this year, but the downside risks to that outlook are
significant."
