January 25, 2012
The Federal Reserve said on Wednesday that it was likely to raise interest rates at the end of 2014, but not until then, adding another 18 months to the expected duration of its most basic and longest-running response to the financial crisis.
The announcement means that the Fed does not expect the economy to complete its recovery from the 2008 crisis over the next three years. By holding short-term rates near zero beyond mid-2013, its previous estimate, the Fed hopes to hasten that process somewhat by reducing the cost of borrowing.
The Fed said in a statement that the economy had expanded “moderately” in recent weeks, but that unemployment remained at a high level, the housing sector remained in a deep depression, and the possibility of a new financial crisis in Europe continued to threaten the domestic economy.
January 25, 2012 | Categories: 2012 Election, Agency Regulation, America's Freedoms, Class Warfare, Cloward and Piven Strategy, Congress, Constitutional Responsibilities, Consumer Issues, Corruption, Corruption in Government, Deficit, Economic Security, Economic Terrorism, Education, Election 2012, Elections Politics, Employer Uncertainty, Energy and Oil, Excessive Government Spending, Federal Reserve Bank, Financial Sector, Fiscal Responsibility, Freedom Justice and Liberty, Fuel Prices, Government, Government Appointments, Government Regulations, GSE, Healthcare, House of Representatives, Housing Crisis, Illegal Election Funding, Jobs, Learn from History, Liberal Scare Tactics, Liberals Big Spending and Taxes, Manufactured Crisis, Media Corruption, Most Americans Reject Socialism, National Debt, National Security, New Media News, Political Contests, Political Incompetence, Politically Intentioned Crisis, Politics, Poll Numbers, POTUS Deception, POTUS Elibility Issue, Private Sector (Free Enterprise), Progressives pushing for Marxism/Socialism, Public Sector (Government), Radical Liberal Progressive Left, Redistribution of Wealth, Rejecting Political Correctess, Senate, Stock Market, Banks & Financial Institutions, Tea Party Conservatives, TEA Taxed Enough Already, The Economy, Treason, Unemployment, Wall Street - Main Street | Tags: 3.2% maximum pace, Ben Bernanke, domestic economy, duration, EU financial crisis, Fed's policy-making committee, Federal Reserve, financial crisis, full recover years away, interest rates, maximum pace, unemployment | 1 Comment »