Jamesb101.com

commentary on Politics and a little bit of everything else

The Federal Reserve thinks the economy is getting better…but has allowed interest rates to hold……

While they are happy with the recovery …and they also have to look over their shoulders at unemployment rates which went up a tick last week (up about 7,000)….

Traditionally more worried about inflation, the Fed is a bit more wary about messing with things with Bernanke still not approved for a new 5 year hitch  yet, and an administration still worried about employment…higher interest rates ( the current key interest-rate has been at the 0 to 0.25% range) would mean less borrowing in housing, business and governmental sectors….Something that would extinguish any upward movement in the economy…..

The question for them will likely be…..how long can the financial markets and other expect those low rates to last?

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December 17, 2009 - Posted by | Government, Media, Politics, The Economy | , ,

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