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.
The "economy has been expanding moderately, notwithstanding some slowing in global growth," the Fed said in a statement Wednesday.
Of course the Fed has to keep the interest rates low. If interest rates go up, the interest cost on our massive 16 TRILLION (and climbing) debt will sky rocket and ballon the deficit to nearly TWO TRILLION A YEAR.
Obama and the Democrats have set this country on a path to financial ruin. We can't afford what we have NOW, yet they propose more and more and if interest rates go up, which they MUST DO EVENTUALLY, the House of Cards the Democrats have built will collapse. Of course, it will happen while Romney is President so of course they will blame HIM, just like they blamed Bush for the Housing collapse that the Democrats planted the seeds for decaades ago.
And once again, America finds itself serving at the altar of a group of PRIVATE bankers known as the Federal Reserve (which is about as "federal" as Federal Express). Ponder this, fellow serfs – approximately $1 TRILLION of the annual budget goes to servicing the national debt... and that's at today's historic low rates near zero. What happens when rates inevitably rise to the typical norm of around 5%? Answer – bankruptcy.
somebody should fire bernanke & replace him with greenspan – bernanke is worthless – at least greenspan had 1/2 of a brain.
Keeping rates low basically means that banks get money very cheaply. Meanwhile, they continue to charge the rest of same high interest rates that they have always charged for credit cards, declaring everyone "high risk."
He's smart,he's giving people time to get from under bad debt,loans,etc.Then they can move to make home loans safer,more compliant,not one of riff raft that wall street created.Also hold corporations accountable for their actions,in any loan or financing move they might take.Jail time,not just a small fine and a slap on the wrist,like what Countrywides CEO got.He got away because of Bushs big corporate buddies,who ran the tables and rigged everything for themselves during those deregulated years under Bush,remember that Repubs,you made the mess.Frank&Dodd tried to clean it up,but you lie again on that fact,check it out...
Tell that to the Credit Card Industry. I have friends who say he rates have gone up up up. what's going on there?
"at least greenspan had 1/2 of a brain."
Are you kidding? Greenspan himself admitted his own incompetence when he said he wrongfully believed the market would police itself. He is one of the very few Randian nutjobs who came out and said his adherence to Rand's philosophy was incorrect, Good like finding many others in the GOBP deathcult to make a similar admission.
GI Joe - Tell that to the Credit Card Industry. I have friends who say he rates have gone up up up. what's going on there?
How many people declared bankruptcy and walked away from their massive credit card debt? That was a loss/cost to the banks that drew down their capital reserves. They need to be rebuilt to preserve the stability of the banks. Once again, there is no such thing as a free ride.