Fed’s low interest rate policy to remain till low 2014

On reading FMOC  statement for Fed’ monetary policy held on 25-Jan-12, I was stumped. It said zero policy rates to remain till end-2014. It got sharp reactions when it was extended to mid-2012 in Sep-11 policy. Now zero policy rates have been extended further by 18 months to end-2014. Looking at economic projections, they are better than Nov-11 projections. And then recent data has been much better than anyone expected including Fed.

TGS Blog does a superb analysis and criticism of the recent Fed move. I just don’t need to  say anything more…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: