We Love You, Mr. Fed! The Wall Street Journal Prime Rate Stays At Four (4) Percent

OK, you can exhale now! Yes, The Fed met yesterday, but you'll be happy to know that they decided to stay the course and leave The Federal Funds Rate at one (1) percent. As a result, The Wall Street Journal Prime Rate will remain dormant as well, staying at a lovely 4% for the time being.

Now's a very good time to get yourself a nice low fixed rate credit card for Christmas shopping. Buying a car for your significant other? Or maybe you plan on surprising the wife with a new vacation home? Now's the time! Enjoy!

Here's part of the press release that The Fed* put out yesterday:

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 1 percent.

The Committee continues to believe that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity. The evidence accumulated over the intermeeting period confirms that spending is firming, and the labor market appears to be stabilizing. Business pricing power and increases in core consumer prices remain muted.

The Committee perceives that the upside and downside risks to the attainment of sustainable growth for the next few quarters are roughly equal. In contrast, the probability, though minor, of an unwelcome fall in inflation exceeds that of a rise in inflation from its already low level. The Committee judges that, on balance, the risk of inflation becoming undesirably low remains the predominant concern for the foreseeable future. In these circumstances, the Committee believes that policy accommodation can be maintained for a considerable period.