The normal 1:15 p.m. release time of the Federal Reserve's monetary statements came and went today, adding to the drama of what turned out to be a dramatic announcement. Instead of just pegging interest rates to a specific target, as it traditionally does, the Fed instead established a target range of between zero and ¼ of one percent, lower than the half-point rate expected by the market.
In addition, the Fed issued a particularly detailed statement of its intentions for rebuilding credit markets, saying "weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.•bCrLf
In response to the announcement the dollar plunged to new lows and prices for Treasury securities, which move inversely to interest rates, skyrocketed.
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