Article - Fed to Keep Interest Rates Low Until 2013
Sep 2011
In an unusual step, the Federal Reserve vowed Tuesday to keep interest rates low for at
least the next two years.
The Fed said it’ll keep its key benchmark interest rate near zero through mid-2013. The Fed’s
commitment was welcome news to many in the real estate industry who see it as a positive move for the
housing industry, allowing buyers more time to take advantage of ultra low mortgage rates.
The Fed said in a statement following its regular policy-setting meeting Tuesday that the overall
economy has grown "considerably slower" than it expected and that consumer spending "has flattened
out." Some economists in recent days have expressed concerns that the U.S. is heading for a double-dip
recession.
Fed officials "are very nervous about the economy," says Mark Zandi, chief economist at Moody's
Analytics. "This is unprecedented for the Fed to indicate they are ready to keep rates low for two more
years."
Still, the Fed continues to forecast a moderate pick-up in growth for the economy in the second half
of the year.
Source: “Fed says it Will Hold Rates Fast Until mid-2013,” MSNBC.com (Aug. 9,
2011)
Dy Associates is an Oakland Real Estate company specializing in commercial, home and
investment property in the Oakland and East Bay Area. We provide real estate services including buyer agent,
seller agent, short sales, commercial and investment aquisitions, loan facilitation, hard money lending, proerty
management. Articles are provided as information only. We do not provide legal or general investment
advice.
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