Contact Us
Make My Homepage

Federal Reserve To Keep Rates Low [AUDIO/VIDEO]

The Federal Reserve says the economy is getting better, but keeping interest rates low will continue to be on the menu for the economic recovery.

Alex Wong, Getty Images

In the after-statement behind their latest two-day meeting, Ben Bernanke and company said housing and hiring continue to improve. They also predict moderate growth this year after a pause in 2012.

Longer term inflation expectation also remained stable, meaning prices for most things should not start to zoom up anytime soon.

“It’s a good environment,” says Rider University Economist Maury Randall.

The Fed also cautioned that unemployment will remain above 6.5 percent for two more years, so low interest rates will also stay for now. Randall says this double-edged sword will make it easy to borrow money, but savers will suffer low returns.

As for Wall Street, “The markets are quite pleased and they welcome what Bernanke had to say.”

The Fed also expressed concern about the effect of federal spending cuts and tax increases.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Best of NJ 101.5

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for New Jersey Insiders quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive New Jersey Insiders contests, events, coupons, presales, and much more delivered to you for FREE.