Ben Bernanke; Interest Rates Will Remain Low Even with a Declining US Dollar
Posted on | November 16, 2009 | No Comments
Federal Reserve Bank Chairman Ben Bernanke remains adamant that interest rates will stay low even though the US dollar continues to decline. At this point the Fed is worked to create jobs and stabilize prices in the housing industry and stock market. Benanke made the following statement about the decline of the US dollar, “We are attentive to implications of changes in the value of the dollar and will continue to formulate policy to guard against risks to our dual mandate to foster both maximum employment and price stability.”
In December of 2008 the Federal Reserve Bank reduced short term interest rates to basically zero. Bernanke and the Fed have been strong in their belief to keep interest rates low to help support the struggling US economy. Even though there have been improvements in financial conditions there are still many roadblocks ahead including unemployment.
The stock market and overall economy has improved since the Fed cut interest rates to all time lows but if the unemployment level remains high we could see the recession prolonged. Major corporations have adjusted their business strategies to employ less people which is going to cause major problems moving forward. Small, growth companies are likely going to lead us out of this high level of unemployment.
Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.
Author: Alan Lake
Comments
Leave a Reply