Wednesday 30 October 2013

Low interest rate is here to stay

(From Article)

Federal Reserve leaves low interest-rate policies unchanged

WASHINGTON (AP) -- The Federal Reserve says its low interest-rate policies are still needed to invigorate a subpar U.S. economy.

In a statement Wednesday after a policy meeting, the Fed said it would keep buying $85 billion a month in bonds to keep long-term rates low and encourage borrowing and spending.

Yet the Fed seemed to signal that it thinks the economy is improving despite some recent weak data and uncertainties caused by the partial government shutdown.

The Fed no longer expresses concern, as it did in September, that higher mortgage rates could hold back hiring and economic growth. And its statement makes no reference to the 16-day shutdown, which economists say has slowed growth this quarter.

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