Fed Plans Aggressive New Stimulus, Keep Interest Rates Low


Posted on Sep 13, 2012

Today the Federal Reserve announced a new round of bond buying, essentially left the program open-ended. It also stretched out its promise to keep short-term interest rates near zero by a year, "at least through mid-2015."

The moves will be controversial, particularly coming less than two months ahead of a heated presidential election. The Fed is already being accused of risking runaway inflation with its previous stimulus programs. And now it will likely come under fire for trying to boost the economy, which could benefit President Obama's re-election chances.

But the Fed apparently felt it had no choice but to act in response to stubbornly high unemployment, sluggish economic growth and the risk of a fiscal-cliff recession at the turn of the year.

"I don't think it's a panacea. I don't think it's going to solve the problem," Fed Chairman Ben Bernanke said of the Fed's decision, in a press conference following the announcement. "But I do think it's going to have enough force to move the economy in the right direction."

However, some economists and market participants expressed disappointment that the Fed's new buying program was not bigger.

"Overall, the Fed has done all the markets were asking for," Paul Ashworth, chief U.S. economist at Capital Economics, wrote in a note. "The problem is that we doubt it will be enough to get the economy on the right track. It's only a matter of time before speculation begins as to when the Fed will raise its purchases."

 

back to top


Get Title Quote Here

Contact Us

First Name:*

Last Name:*

Phone:*

Email:*

Tell us more:


 

Mega Title, LLC

721 Route 34, Suite 3
Matawan, NJ 07747
Phone: 732-242-9835
Toll Free: 877-550-MEGA
Get Directions | See Detail

Connect with Us:

Testimonials

  • Samah and her team at Mega Title were efficient and professional in
    handling our refinance closing. I had used them in a prior refinance
    and was so impressed with the attention to detail that I came back
    this time again. They are accomodating to your schedule, meet the
    deadlines so they don't waste your time and most of all treat you as
    if you are their most important customer at all times. I couldn't ask
    for better service - they took care of everything. Just had to show
    up and sign.
  • As a real estate attorney, I have dealt with numerous title companies.
  • I recently refinanced my home. Mega Title really made my life much easier.
  • I really appreciated the excellent service and caring attitude during my refinance.
  • I can't express how impressed I am with your customer service!

View All