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Divided Federal Reserve says likely to keep rates low through mid-2013

Posted on August 10, 2011 by Kendall Harmon

The Federal Reserve on Tuesday sharply downgraded its outlook for the American economy and took the extraordinary step of signaling that it would hold short-term interest rates at exceptionally low levels “at least through mid-2013.”

The move marks the first time that the U.S. central bank has pegged a specific timetable to a pledge on its benchmark interest rate, the federal funds rate, which has been near zero since late-2008.

But the decision came with three dissenting votes from Fed committee members, reflecting concerns about the threat of runaway inflation down the road.

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Posted in * Economics, Politics, Consumer/consumer spending, Corporations/Corporate Life, Credit Markets, Currency Markets, Economy, Federal Reserve, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The U.S. Government

2 comments on “Divided Federal Reserve says likely to keep rates low through mid-2013”

  1. Ad Orientem says:
    August 10, 2011 at 2:47 am

    Money printing without end. I’ve seen this movie before and I know how it’s going to end. Apparently a few other people have a grasp of history as well with gold trading well over $1700 oz.

  2. NoVA Scout says:
    August 10, 2011 at 7:46 am

    It seems contrary to the forces of nature that the Fed would be keeping interest rates at zero or thereabouts for a very long time out into the future when so many indicators are suggesting that massive inflation is in the air.