Fed to hold rates at lows for ‘extended period’

[sabra]

Source: MSNBC/Reuters

Central bank’s message could mean hikes are coming within several months

WASHINGTON - The Federal Reserve held benchmark rates near zero on Tuesday and renewed a promise to keep them exceptionally low for an extended period while pointing to increased momentum in the economy's recovery.

The central bank's nod to a firmer rebound from the deepest recession in decades hints that it is moving closer to dropping its promise to hold borrowing costs at rock bottom levels, suggesting rate hikes could come within several months.

For a second consecutive meeting, Kansas City Federal Reserve Bank President Thomas Hoenig dissented, saying the commitment to keep rates exceptionally low for an extended period was no longer warranted.

...

The Fed said the labor market was "stabilizing," a view that was more upbeat than at the last meeting in late January, when the policy-setting committee said only that deterioration in the labor market was "abating."

Read more: http://www.msnbc.msn.com/id/35888950/ns/business-stocks_and_economy/

[DJ13]

1. The Fed said the labor market was "stabilizing,"

.....face down flat on the ground.

Theres nowhere left to go but up?

[Lagomorph]

2. I wish I could go back to college.

I'd love to hear what the economists and business professors have to say, lately.

I spent the last fifteen years asking anybody who would listen what was going to happen when housing appreciation reached it's upper limit. Many acted like there wasn't an upper limit and everybody would be able to afford a half million dollar house or three.

[No Elephants]

5. Half million still doesn't buy much in many places in the U.S.

[mrdmk]

7. I go to school and here is what is being said...

At Irvine Valley College

Spring 2006 Econ 1 Micro Economics Got into a discussion about Bernanke about raising the interest rate and the potential collapse of the housing market. We both agreed that the housing market was going to be in trouble, we disagreed to the extent of the problem. He said that economy will absorb the hit because how large it was, I said the economy is going into major depression because the Finance Industry made more bad loans than what is being reported. This is at the same time that New Century was having major problems. This professor and I had a conversation last semester in which he said, "I feel like I am going soft!" You can make that into what you want...

Fall 2007 Econ 2 Macro Economics This professor and I got along very well. We concluded that the economy was over-heated due to an unregulated market, low interest rates, and low tax rates!

At Cal State University of Fullerton

Spring 2008 Econ 333 Economic Development This professor and I had many in office discussions. My paper was on the current economic status of Sudan. He was very familiar with Sudan considering he was from Egypt. My statement to him was Sudan Government was wasting resources due to very little agriculture in the south (both of the head water of the White and Blue Nile start in Southern Sudan), and there was absolutely no aqueduct system in the North (in the North most of the area is dry, but it has fertile soil). His reply was, "If Sudan had its act together, it could feed all of Africa very cheaply and still make a huge profit"! He also said that all governments over-state their economic condition (paraphrased)...

Fall 2008 Econ 315 Intermediate Business Economics This professor and I also had many in office discussions. He felt no more regulations were needed, just enforce the ones that we have will due. I commented that some people really need to go to jail, he agreed...

Spring 2009 Fin 320 Business Finance and Fall 2009 Fin 340 Intro to Investments This is the same professor. When he ran a hedge fund, he did a study of Goldman Sachs and their predictions compared to the actual tend in the market. His conclusion was they had the best forecasters in the world or they were manipulating the market. He concluded that if this was in an Balance Statement (an accounting report), that it would attract the attention of the SEC. Unfortunately, he predicts no body from Goldman Sachs will be going to jail.

Of course, being a Business Major with an emphasis in Accounting, I have taken many more business classes, but these are the most pertinent to your "wishes." With aforementioned, most of my professors tend to be conservative in their beliefs. It is very difficult sometimes to learn from these people, but one must respect their position and why you are there...

[TheWatcher]

3. "The Banksters are not done Robbing You Yet."

Please Stand By.

[Mithreal]

4. +1

[bossy22]

9. don't blame the banks totally

blame china- they have been eating up dollars while we keep trying to free them. They are counteracting our own policy so they can artifically keep their goods cheap and ours expensive. they are destroying american jobs

[No Elephants]

6. That should ensure everyone who has a dollar will put it in the stock market instead of in a bank.

[bossy22]

8. its not going to do any good

as long as we keep letting china eat up all the extra currency that we flow. Everytime we increase money flow china just increases its holdings; this is to ensure that their precious yuan holds stable at a depressed value- making our imports more expensive and their exports cheaper....thats why they keep accruing these rediculously large foreign reserve holdings

the U.S. Government needs to grow some balls and stand up to china when it comes to this. Because the chinese are killing american jobs and american wages by keeping this up...but maybe im just naive to hope for this.