Fed: Rates To Remain Low Into 2014

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Federal Reserve Chairman Ben Bernanke.

The Federal Reserve issued a statement on Wednesday saying that the economy of the United States has experienced moderate growth, despite slowing global economic growth, since the central bank’s Federal Open Market Committee met last month.

The Fed says that it will keep interest rates at a record low to “foster growth” of the moderately improving economy. The rates have been kept near zero for three years and will likely not be raised until late 2014.

The Fed statement says:

To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 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.

According to Financial Times, the Fed decision suggests that the Federal Open Market Committee wants to do all it can via communications policy to bolster investment before considering another round of quantitative easing, which Fed Chairman Ben Bernanke has not left off the table.

The central bank says it believes that one of the biggest threats to economic growth in the United States is the European financial crisis.

 

Sam Rolley

Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After covering community news and politics, Rolley took a position at Personal Liberty Media Group where could better hone his focus on his true passions: national politics and liberty issues. In his daily columns and reports, Rolley works to help readers understand which lies are perpetuated by the mainstream media and to stay on top of issues ignored by more conventional media outlets.

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