Fed Ties Rates to Joblessness - Wall Street Journal

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BY JON HILSENRATH AND KRISTINA PETERSON

The Federal Reserve, clarifying its intentions for an economy hobbled by uncertainties, for the first time spelled out the unemployment level it would like to see before it raises short-term interest rates.

The Fed said Wednesday, at the conclusion of its last policy meeting of the year, that it would enter 2013 with a plan to purchase $85 billion a month of mortgage-backed securities and Treasury securities, part of a continuing attempt to drive down long-term interest rates to encourage borrowing, spending and investing.

The Fed said it didn't expect to touch short-term rates until it saw the unemployment rate ...

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