At the Conclusion of Its Meeting on December 16, 2009

question 48

Essay

At the conclusion of its meeting on December 16, 2009, the Federal Open Market Committee released a statement that included the following sentence: "The committee will maintain the target range for the federal funds rate at 0 to ¼ percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period." What is the significance of this statement?

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Definitions:

Privity of Contract

A legal concept that restricts the rights or duties arising under a contract to the parties who agreed to it.

Contractual Relation

A legally binding agreement between two or more parties that outlines the rights and duties of each party.

Tacit Agreement

An understanding or agreement that is implied from actions or circumstances, not explicitly stated.

Implied Warranty

An unwritten and unspoken guarantee that a product will meet a minimum level of quality and reliability.