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| Ben Bernanke |
NewsNM note (Spence) - Are you hoping you might be able to get a higher rate on a CD sometime soon because the economy is improving? THINK AGAIN
The bond market has already shifted expectations that there will be no changes in interest rates by the Federal Reserve until 2014. The market reacted to this excerpt on the Fed's statement regarding its January meeting:
To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.
Don't believe what any politician tells you about economic recovery. Watch the Fed for signs that we are returning to a stronger economy.
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