“Federal Reserve Says it Will Keep Rates Superficially Low at least Through 2014”
It is a good thing we have an election coming up at the end of this year. For the Fed to keep coming out with these intentions to keep interest rates at these level, will just continue bleeding red ink, for a long time.
The Fed is printing money at levels this country has seldom seen. The administration is creating this false hope that printing money will take us out of the economic crisis that we are in. The only thing that is doing is mortgage our future, our kids future and grandchildren as well.
Maybe as a mortgage broker I should just be happy, that rates stay at, below real market rates, but it is clear the long term damage that is being done.
Federal Reserve Will Continue to Buy MBS
By: Bonnie Sinnock
The Federal Open Market Committee said Wednesday that the central bank will maintain its reinvestments of principal payments from agency mortgage-backed securities and debt holdings into new agency MBS.
Federal Reserve noted that the U.S. economy “has been expanding moderately” since its last meeting but “despite some signs of improvement, the housing sector remains depressed.”
The FOMC will keep the target for the Fed Funds rate at 0 to 1/4%, noting that it believes economic conditions still warrant exceptional low rates through at least late 2014.
Committee member Jeffrey Lacker continued to dissent on the last point while others voted for the aforementioned policy action.
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