Fed Says Recession “Likely” Over, Experts Don’t Believe It
September 21, 2009 by Emma
arm4.static.flickr.com/3537/3348350633_05b146223b_m.jpg" class="r" width="240" height="180" alt="Grays Papaya Recession Special">On Wednesday, the Federal Reserve will conclude its two day FOMC meeting and announce what they plan to do with the federal interest rate. Most experts expect the rate to stay at the 0% to 0.25% range the Fed set several months ago. With unemployment near or above double digits in some areas, it would be extremely difficult for the Fed to justify a rate increase at this point.Last week, Jim asked if you thought the recession was over. In the post, he highlighted Ben Bernanke’s comments about how we were “very likely” seeing the end of the Recession but it doesn’t appear that experts believe him!
In general, the Federal Reserve lowers the target rate when it wants to boost the economy. Lower rates mean businesses can borrow money cheaper. It also means banks offer lower rates on deposit accounts, like CDs and savings accounts. The lower they go, the less incentive we have to save – so we boost the economy be spending more. The 0% – 0.25% target range is about as low as it can go.
We need to wait until Wednesday to see what the Fed announces but experts believe rates won’t increase until next year. If you were hoping for a frothy return to economic prosperity… you might have to wait until next year to pop the bubbly.
Fed not acting like there’s a recovery [CNN Money]
(Photo: Ed Yourdon)
Related Websites - Retailers enjoy a Xmas good turn. Retailers won the closely watched holiday skirmish with shoppers, who opened their wallets a little bit despite a still struggling economy, fewer discounts than last...
- Mammoth Mountain Ski Resort, Mammoth Lakes, CA Mammoth Mountain Ski Resort is located in: Mammoth Lakes, CA Phone: (760) 934-0745 About the Resort: Mammoth Mountain Ski Resort is located in the gorgeous...
- Determining Your Target Heartbeat Rate There are a bunch of little ways to mathematically figure out how you can improve your diet and exercise, and one of these ways is...
- Improving Cash Flow vs. Accumulating Wealth When it comes to personal finance, most people are very familiar with the concept of cash flow. They know that their monthly pay represents cash...
- Lower Savings Rates and an Irrelevent Post I was just checking my ING savings account and I noticed that their rates dropped again. Savings is now at 3.10% APR. I still love...