Daily News: July 1, 2013

Fed Officials Intensify Effort to Curb Surge in Rates

Bloomberg reported that Fed officials have intensified efforts to curb a growth-threatening rise in long-term interest rates, seeking to clarify comments by chairman Ben S. Bernanke that triggered turmoil in global financial markets.

According to Bloomberg, William C. Dudley, president of the New York Fed said any decision to reduce the pace of asset purchases wouldn’t represent a withdrawal of stimulus, and that an increase in the Fed’s benchmark interest rate is “very likely to be a long way off.”

Dudley reminded that the FOMC has said it will keep the benchmark rate close to zero so long as unemployment exceeds 6.5& and the outlook for inflation is no more than 2.5%, Bloomberg said.

To read the Bloomberg story click here.