Federal Reserve says no rate hikes until at least late 2014

msnbc.com ^ | 1/25/12 | msnbc.com news services

[ColdOne]

The U.S. Federal Reserve said Wednesday it will not raise interest rates until at least late 2014, even later than investors expected, in an effort to support a sluggish economic recovery.

Without making major shifts to its outlook for the economy, the central bank described the unemployment rate as still elevated and said it expects inflation to remain at levels consistent with stable prices.

“I think what they are seeing is that the rate of growth is not sufficient to bring down the unemployment rate,” said Brian Dolan, chief strategist at Forex.com.

The Fed depicted business investment as having slowed, downgrading its assessment from the December meeting.

Economic conditions "are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014,"

[warchild9]

What this implies is that they plan on printing funny money at top speed to satisfy the parasite class...with the resultant increased inflation for all.

[Responsibility2nd]

The fed gov will NEVER raise interest rates. How could they?

Total interest on our national debt in fiscal 2010 was 395 billion.

http://www.babylontoday.com/national_debt_clock.htm

The US can never begin to pay this down even with low interest rates - so they certainly won’t raise rates.

Savers, investors, retirees.... we’re all screwed.

[dragnet2]

They know damn well, if interest rates are raised, the wheels come off and the economy hits the wall.

[oh8eleven]

The bond market should be happy.

[ErnBatavia]

Savers, investors, retirees.... we’re all screwed.

Yep - when I hung it up ten years ago, money market accounts were paying right at 8%....I coulda squeezed by on that.

That there's one more reason a whole bunch of us Boomers went on the tit at age 62.

[newzjunkey]

How many years does this make for SAVERS to be punished?

[DeaconBenjamin]