The Federal Open Market Committee voted December 16 to cut the Fed Funds rate to “zero to 1/4%,” down from a target rate of 1% established at the last Federal Open Market Committee meeting. The Fed’s announcement noted that it will “employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. In particular, the Committee anticipates that “weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.”

The announcement reiterated the Fed’s intent to “purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and it stands ready to expand its purchases of agency debt and mortgage-backed securities as conditions warrant.” The Fed also says it continues to look into buying back long-term Treasury securities.