Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

Fed: Interest Rates To Stay Low Into 2013

August 10, 2011 by  

Fed: Interest Rates To Stay Low Into 2013

International markets were anxiously waiting to see what answers Chairman Ben Bernanke and the United States Federal Reserve’s Federal Open Market Committee would offer after their policy meeting Tuesday. Some people had speculated the meeting could result in another round of quantitative easing, but that turned out not to be the case. Instead, the Fed has decided to keep interest rates low for two more years.

“To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent,” read a press release from the Fed. “The Committee 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 mid-2013.”

“Fed policymakers used significantly more downbeat language to describe current economic conditions,” an article for NPR noted. “They also said that temporary factors, such as high energy prices and the Japan crisis, only accounted for ‘some of the recent weakness’ in economic activity.”

The article also reported that Wall Street did not seem to respond favorably to the announcement: “Stocks initially fell after the statement was released, possibly reflecting disappointment that the Fed did not announce another round of bond buying.”

The Fed press release did draw attention to several positive current economic trends, though, noting that “business investment in equipment and software continues to expand,” and over the long term, inflation expectations are stable.

Special To Personal Liberty

You Sound Off! is written by our readers and appears the last Wednesday of each month. If you would like to submit an article or letter to the editor for consideration for You Sound Off!, send it to yousoundoff@personalliberty.com by the Friday before the last Wednesday of the month. To be considered, a submission should be 750 words or less and must include the writer's name, address and a telephone number. Only the writer's name will be published. Anonymous submissions will not be considered.

Facebook Conversations

Join the Discussion:
View Comments to “Fed: Interest Rates To Stay Low Into 2013”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

  • http://www.easyinvest.co.za peter

    Can they go lower Please? Say -5%? Maybe that would help!

  • TML

    “the Fed has decided to keep interest rates low for two more years.”

    Which means they will continue inflating the dollar, making it worth less.

  • argoman

    The way the Feds are going, the dollar will be cheaper than wall-paper. i wonder how my living room will look in green-backs?

  • TIME

    Look folks the fix is really easy as far as the progressives see it, here’s the plan.

    You work, but you get no pay at all. All of what you make goes straight to the Political Class who have a BIG LOCK BOX, that they keep all that money in.

    Everyone will get the same amount of money on a credit system, that means even the bum down the street that just will not work will get what you get for working your ass off for 70 hours per week.

    Everyone will get a nice 70 sqft home, or litter box with a cott. One uniform per year one pair of shoes per year. You can’t have a mate nor children with out a Government’s OK, but hey in 70 sqft and a kid, really?

    You will have no car, you will take a train and walk in the snow and rain to get to the train. You will live in a city your told to live in. But all your stuff, well food, health care, and that 70 sqft room is FREE!

    You will have a Tellie mounted on the wall and it will have just ONE channel that you must watch in your spare time.
    You will have a cell phone that you must carry with you at all times with ear plugs in so you can hear the very important messages from your NEW GOD leaders.
    But hey all this is FREE!!!!!!!!!

    You will never have to think again, it will all be done for you by your new GOD LEADERS.

    And them NEW GOD leaders we will just call them the political class, they will fly around on jets or be driven around in Bently’s and have the best Tailor fitted suits money can buy. The Biggest homes you can think of 50,000 sqft would be a small one.
    The best food that can be grown.

    Think of the Great French line; “Let them eat cake.”
    Yea thats for YOU!

  • http://www.diyyardandhome.com Dan

    It’s a pure political move bent on protecting Obama. One it was to calm the markets and second Obama would never get reelected for sure if we add in inflation to the mix of his economic failures.

  • Song

    This is sad, very, very sad.

  • 45caliber

    The Feds are acting exactly opposite what they used to do. If you want to stabilize an economy, you raise the rates. That means fewer people can afford to borrow so there is less spending. The value of the dollar rises. And that was how the feds were able to keep our dollar value up. Now they lower the rate – or keep it low – to encouarge more people to borrow – which means more spending – which means a lower value for the dollar.

  • http://Patriot Ray

    Isnt it a shame that the people who saved their money and try to live off the interest and social security have to get nothing for their investment. Beneke is just looking out for his welfare. He will get a check each month after he retires that is funded by the taxpayers. There are 70 million people on retirement trying to make a go but they have to borrow money to the rich banks and government for nothing. Give them more interest and they will have more to spend to get the economy moving. “Wake up Federal Reserve.”

  • RWS

    I don’t think it’s much of a surpise to anyone on this blog that the federal reserve isn’t looking out for our best interest as a nation and neither are the politicians. They are trying to fundamentaly ruin our currency and our economy further. If the federal reserve really cared about the future of this country, they would have the balls to make a tough decision of raising rates. Instead they are open about the fact that they just want inflation to continue and kick the can down the road.

    Some people say this recession isn’t as bad as the great depression was becuase you just don’t see people standing outside factories begging for a days work or you don’t see lines half a mile long waiting for a bowl of soup and they may be right but the government in all their infinite wisdom has made the problem worse for this coming decline that we all fear. They think they have all these tools that are supposed to stimulate the economy but all they do is delay a real recovery. QE, 99 weeks unemployment, low rates, bailouts, stimulous. All these things do is allocate money in the wrong places and it accounts for fake growth where real growth is produced by the private sector. Now the private sector is so afraid to step out on a limb becuase of all the debt that’s been taken on and the damage that has been caused by the socialist society and economy planners in washington.

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.