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…

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