Rate Watch 1-29-2009

Cautiously Floating:

Bonds continue to face some pressure this morning on the heels of yesterday’s Rate and Policy Decision from the Fed. As expected, the Fed kept the Fed Funds Rate steady. They also indicated that "economic conditions are likely to warrant exceptionally low levels of the Federal Funds Rate for some time" and that "inflation pressures will remain subdued in coming quarters".
In other news, as expected the House of Representatives passed President Obama's $819B stimulus package, by a vote of 244-188, being split fairly cleanly by party lines. The House legislation includes an estimated $544B in federal spending and $275B in tax cuts for individuals and businesses.