.

Around Here

Fed to keep interest rates low until jobless rate dips below 6.5 percent

Fed to keep interest rates low until unemployment rate dips below 6.5 percent

 

The Federal Reserve will spend $45 billion a month to sustain an aggressive drive to keep long-term interest rates low, the AP reported today.

 

And it says it plans to keep a key-short rate near zero until unemployment drops below 6.5 percent.

 

The policies are intended to help an economy that the Fed says is growing only modestly with 7.7 percent unemployment in November.

 

The Fed also kept its target for its benchmark short-term interest rate at a record low near zero, where it has been for four years. 

 

The Fed said today it would link any future rate change to lower unemployment, as long as inflation is expected to stay below 2.5 percent.

 

Before today, the Fed had said it planned to keep th rate low until at least mid-2015, according to the AP.

 

For more:  http://www.trulia.com/blog/ken_allen/2012/12/the_allen_report_fed_to_keep_interest_rates_low_until_unemployment_rate_dips_below_6_5_percent

 

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »