FED Keeps Rates Unchanged, Projects Lower Growth Rate for ’11 & ’12

The FED announced it was keeping rates unchanged, based in part on a projected lower growth rate of the U.S. economy for ’11 & ’12. Mr. Bernanke hinted that the lower growth rate, coupled with projected unemployment of 8.6% to 8.9% in the 4th quarter, could have rates stay right here for "an extended period". 

Markets had regained their modest losses from earlier this morning. The market drifted higher after the announcement.

A few hours ago The Federal Reserve Board in it’s quarterly economic forcast) said the pace of the U.S. economic recovery was proceeding "more slowly than expected". So the announcement of rates staying put was no real surprise.

With markets remaining calm, The VIX is currently at 17.94, down 0.92 on the day.