Fed says no rate hikes until at least late 2014
WASHINGTON (Reuters) - The U.S. Federal Reserve on Wednesday said 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. It depicted business investment as having slowed, dowgrading 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," the central bank said in a statement.
Richmond Fed President Jeffrey Lacker, an inflation hawk who rotated into a voting seat this year, dissented against the decision. He preferred to omit the description of the time period for ultra-low rates.
http://finance.yahoo.com/news/fed-set-push-back-timing-062228298.html
msongs
(67,403 posts)Lance_Boyle
(5,559 posts)ridiculously low rates for borrowing will be extended.
Johnson20
(315 posts)particularly onerous on those in retirement or on the verge of it, that is those living or intending to live on a fixed income.
SomeGuyInEagan
(1,515 posts)They said they "are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014." But that is just a prediction, based on data available. That could change in six months, based on newer data.
Looks like Reuters got it wrong originally (what you posted) and has since re-written the lead.
KrazeeKrewe
(34 posts)Last edited Thu Feb 23, 2012, 11:03 PM - Edit history (2)
Wall Street Journal: Why can not we believe the FedA review of the Federal Reserve from 1986 to 2006 discovered that they missed with their forecast 100% of the time. Most of the time the Fed missed the forecast by 50% or more. And 50% of the time the Fed missed with their forecast by 100% or more.
Private companies were far more accurate at forecasting.