While stability is seen in various aspects of the market as far as the financial segment of the market is concerned but Fed has predicted that there should be exceptionally low levels of the federal funds rate for an extended period.

The stock markets have shown a positive impact to the move of central bank. Notably, the so-called fed fund rate has been moving around the level zero since December 2008.

The fed fund rate is the benchmark level of finding out how much interest the consumers and various businesses are paying on the wide variety of loans. As the fed has forecasted a 4% growth for 2010 and 2011, it has further said that the transfer rate will remain around the same levels for the coming months.

However, as the February is closer to ending the mortgage buying of $1.25 trillion of mortgage backed securities, experts are of a view that the mortgage will get expensive once Fed gets over with its purchase. The Fed further forecasted a moderate growth for the short-term with no threat from the rising inflation.