Showing posts with label low rates. Show all posts
Showing posts with label low rates. Show all posts

Wednesday, January 25, 2012

Fed to Keep Rates Low Until 2014

It's official! We will not see "normalized rates" anytime soon.



NEW YORK (CNNMoney) -- The economy is improving, the Federal Reserve said Wednesday, but not enough to warrant higher interest rates for at least two-and-a-half more years.

The central bank indicated that it expects to keep the federal funds rate near historic lows until late 2014 -- an extension from the Fed's original pledge to keep rates low through mid 2013.

"[T]he economy has been expanding moderately, notwithstanding some slowing in global growth," the Fed said in a statement Wednesday. Meanwhile, the program known as Operation Twist remains in place.