Today the Federal Reserve announced that it would be leaving interest rates unchanged from their current 0%-0.25% levels. The Fed also stated that the economy appears to be leveling off, but is still suffering from job losses and tighter credit. From the looks of the statement it appears that The Fed is planning on keeping interest rates at these low levels for the foreseeable future.
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The Fed Leaves Rates Unchanged4 comments to The Fed Leaves Rates Unchanged |
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This doesn’t surprise me; raising rates now would probably incite a huge backlash, especially given the continued weakness in the unemployment figures.
I’m afraid if they don’t begin tightening up soon, inflationary times will hit hard. I think Big Ben and the rest of the Fed know this, but will find it hard to do their job as Washington will probably pressure them into expansionary policy at the expense of inflation control. What’s your outlook?
I agree with you 100% Blake. It’s a shame that government is going to continue to hurt savers by devaluing our currency. Warren Buffet wrote a great piece in the NY Times this morning on this topic. I think I’m going to do a post on it. Thanks for commenting!
That was an interesting article for sure. Thanks for the link.
I’m hoping we do the right thing. I’d especially like to lock in some long-term CD’s if interest rates are allowed to rise a decent amount. :b
Yeah over time interest rates have nowhere to go but up. I’d wait as long as you can before buying long-term CDs or fixed income investments. Until rates rise a bit keep stuff in shorter-term maturities.