WASHINGTON (OfficialWire) — When the Federal Reserve meets this week, it’s likely to affirm a message it intends to help lift the economy: that consumers and businesses will be able to borrow cheaply well into the future — even after unemployment has dropped sharply.
Last month, the Fed signaled for the first time that it will tie its policies to specific economic barometers. It said that as long as the inflation outlook is mild, it could keep short-term rates near zero until unemployment dips below 6.5 percent from the current 7.8 percent.
That could take until the end of 2015, the Fed predicted last month.
The Fed’s guidance was designed to give consumers, companies and investors a clearer sense of when super-low borrowing costs might start to rise. Though some key sectors of the economy are improving, analysts think the Fed still feels more time is needed for low rates to spur borrowing, spending and economic growth.
One reason is that many Americans remain anxious about the budget impasse in Washington.
Read More at OfficialWire . By Martin Crutsinger.
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Here we go. Another FEEL GOOD from the FED. All a big SMOKE SCREEN. Make people feel like they are doing something, while in the background, the FED manages to get Complete Gun Confiscation passed.
The second that interest rates increase to what used to be a “normal” rate is when this country goes under financially due to the vast amount of money we owe. When that happens, the amount of money we have to pay back in one year will cause this country to default on the loans, or people will have to pay vastly increased taxes which will put them “under”.