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In August, the Fed introduced language suggesting that short-term rates would be at exceptionally low levels through 2013.
But he expected the federal funds rate to remain at "exceptionally low levels for an extended period".The battered American housing market showed some signs of life.
As they have said for months, they will use "all available tools" to support the economy and will keep the benchmark federal funds rate at "exceptionally low levels" for the foreseeable future.
The Standard & Poor's 500-stock index wiped out most of a 1.5percentt rally that began after the Fed said it would leave interest rates at "exceptionally low" levels for an extended period.
But interest rates are already at exceptionally low levels – and it is far from clear that extraordinary measures, such as quantitative easing and the ECB's outright monetary transactions, are having much impact on the economy.
The UK economy now seems to be in a prolonged phase of disappointing growth performance, and it may well be that the current policy of keeping interest rates at exceptionally low levels is aggravating this problem, not making it better.
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The spill is unfolding at a time of exceptionally low levels of trust in government, which may make the public even less forgiving.
"There are virtually no businesses or consumers who are not making investments or purchases now who will be induced to do so because interest rates are lowered from the already exceptionally low levels," said David Orr, chief economist at First Union Corporation.
It added that economic conditions were "likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013", and had looked at a range of policy tools to promote a stronger low-inflation recovery.
Two weeks ago, the committee that sets monetary policy declared that conditions "are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013" — that is, it didn't even promise to keep rates low, it just offered an observation about what the state of the economy is likely to be.
In particular, the committee decided today to keep the target range for the federal funds rate at 0 to ¼ 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.
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