0.00002% they raise rates in 2015

Discussion in 'Economics' started by S2007S, Dec 2, 2014.

  1. S2007S

    S2007S


    Now since there is no inflation according to everyone at the Federal Reserve it looks like at least another 5 years of zero interest rates.....they will throw out every excuse not to raise rates and if they raise them it will only be about an 1/8 just to test the market, but I can almost guarantee that rates stay below 1% into 2020.


    Fed's Fischer: No inflation? Then forget rate hike

    14 Mins AgoReuters
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    COMMENTSFederal Reserve Vice Chairman Stanley Fischer said that if inflation fails to take hold, the central bank will need to leave rates at their current low levels, delaying liftoff from the near-zero rates where they have remained for six years.

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    Jim Watson | AFP | Getty Images
    Federal Reserve Vice Chair Stanley Fischer.
    "If inflation is really heading south we will have to do that," Fischer said at a conference sponsored by The Wall Street Journal.

    Weak global demand, low oil prices, and other factors are expected to weigh on U.S. inflation and delay the Fed's progress toward its 2 percent annual inflation goal. The Fed still expects U.S. inflation to rise gradually, and Fischer said that the global forces holding down prices are "not the main driver for the U.S. economy."

    Read MoreFed rate hike victims: Not who you think

    Still, he said, if U.S. inflation does not show signs of responding, the Fed will have to act accordingly and hold off on any rate increase.

    "We have said we are data driven," Fischer said. The Fed is currently expected to approve an initial interest rate increase in the second half of next year.
     
  2. loyek590

    loyek590

    well, that's cool, I don't really like high interest rates. I'm not in debt, but if I ever want to borrow some money I don't want to pay a lot for it.

    True, I'm not getting paid much on my savings, but then again, I'm not really a bank, am I?