Federal Reserve's Statement on Why It Plans to Keep Interest Rates Low Through 2014

Information received since the Federal Open Market Committee met in December suggests that the economy has been expanding moderately, notwithstanding some slowing in global growth. While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but growth in business fixed investment has slowed, and the housing sector remains depressed. Inflation has been subdued in recent months, and longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects economic growth over coming quarters to be modest and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that over coming quarters, inflation will run at levels at or below those consistent with the Committee’s dual mandate.

To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.

The Committee also decided to continue its program to extend the average maturity of its holdings of securities as announced in September. The Committee is maintaining its existing policies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate to promote a stronger economic recovery in a context of price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Sarah Bloom Raskin; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who preferred to omit the description of the time period over which economic conditions are likely to warrant exceptionally low levels of the federal funds rate.

Gov Quinn's Statement on the President's State of the Union

CHICAGO – January 24, 2012. Governor Pat Quinn today released a statement regarding President Barack Obama’s fourth State of the Union Address.

“We in Illinois applaud President Obama for the vision he laid out in tonight’s State of the Union. The President put forth a blueprint for a growing economy that gives all Americans equal access to the success through hard work that has always made this nation great. We agree with the President that we can’t wait – we need to keep pushing to restore our economy and the American middle class.

“In Illinois, we are focused on the same issues that the President laid out tonight: creating manufacturing jobs and training our workforce for the 21st century; making education more accessible; modernizing our roads and bridges; and prioritizing housing for our families.

“And as the President said, an America built to last calls for responsibility from each of us and fairness for all. We commend the President on his vision, and look forward to working together as a nation to restore our economy and create opportunities for all Americans.”



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Budget Director David Vaught on Illinois' Finances, Pensions and Educational Funding

US Senator Mark Kirk Comment on the Tax Rate Agreement

“The agreement negotiated between the Administration and Senate Republicans reflects an important step towards protecting Americans from a tax increase on January 1st and the risk of another recession. It’s time to put partisanship aside and do what’s best for American families and small business employers. This centrist compromise will help us spur economic growth and create good-paying jobs in Illinois and across the nation.”

Brady Campaign Touts Lead in Emails

FROM BILL BRADY CAMPAIGN EMAIL

Voters continue to support Bill Brady's call for a clean break from the old politics in Illinois. In fact, a sixth consecutive poll, released today, shows a big lead. Rasmussen Reports reveals Bill beating Pat Quinn by 45 to 38 percent. Only 40 percent of voters approve of Quinn's job as governor.

Clearly voters are against Quinn's push to raise state income taxes by 33 percent. The "iTunes" tax plan and canoe czar fiasco further showed the governor's inability to stand up for Illinois voters.

In fact every statewide public poll released in the past month has shown Bill Brady with a significant lead against Pat Quinn. A survey conducted in southern Illinois shows Bill Brady leading Quinn there 49 to 25 percent.