For first time, Federal Reserve links interest rates to 6.5 pct. unemployment, low inflation

  • Article by: MARTIN CRUTSINGER , Associated Press
  • Updated: December 12, 2012 - 6:47 PM

WASHINGTON - The Federal Reserve said Wednesday that it plans to keep interest rates ultra-low even after unemployment falls close to a normal level — which it thinks could take three more years.

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woodyagDec. 12, 1212:16 PM

The Fed is not "spending" $45 Billion a month; the Fed is "printing" $45 Billion a month. Not banknotes, of course, but new electronic money that winds up as more credit. For? The Big Banks; of course; so they can pay those bonuses, buy more oil and corn futures, and pay you- what, 1% on your savings? Sounds good to me.

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alr213Dec. 12, 1212:29 PM

Bad news for seniors and savers, who are seeing their savings eaten away by near zero yields and real inflation rates. Also bad news for taxpayers and/or employees whose pension funds assume a 6-8% investment yield. Guess who's going to have to kick in the difference?

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notforwardDec. 12, 1212:40 PM

With clear thinking like this, how in the World has this administration added six trillion dollars to our deficit in four years? I just don't get it.......

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infowarsDec. 12, 1212:41 PM

The greatest wealth transfer in the history of the world continues. Can the Fed print silver and gold? Nope. Hold those instead if you don't want to be robbed.

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muggsh2oDec. 12, 1212:48 PM

Do you think we might need massive reform? The people running are country and states are those dweebs that used to play Sims City years ago, except now its real life and they're sinking us!

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callmeronDec. 12, 1212:48 PM

The Federal Reserve is PRINTING money (electronically) to buy bonds to push interest rates down and INFLATE stock market values. This is a continuation of the THIRD round of "quantitative easing" conducted by the Fed since 2009 which has already pumped in excess of $2 trillion into the capital markets. Every time one of the "quantitative easing" programs ends, stock values fall, as they did for six consecutive weeks in 2011 and again from early May to early June 2012. Chairman Ben Bernanke has publicly stated that the goal is to inflate stock market values in an attempt to bring down the stubbornly high unemployment rate (which is 11% if you add back the millions of unemployed workers who stopped looking for work and no longer count as officially unemployed as one must actively seek work to be included in the government's figures). Why is the job market so bad? Because of Barack Obama and the Democratic Party. Nobody is going to invest in an environment of massive budget deficits and soaring tax rates. Before a single product is manufactured or a restaurant serves a single meal, investment must occur--investment that creates jobs.

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noadjustmentDec. 12, 1212:57 PM

How is another $1.02Trillion a year in spending going to help the bidget deficit?

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EleanoreDec. 12, 12 1:06 PM

I'm counting this as part of the presidents deficit spending, which brigs his total even higher on the single seat biggest spender in the history of the planet shrine. He certainly does stick to what he knows.

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bblheadDec. 12, 12 1:40 PM

Another bad business decision.............

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ciamanDec. 12, 12 2:03 PM

So it appears that Ben at the Federal Reserve will keep the interest super low until at least mid 2015 and it will continue as long as Ben wants it to be there?? He will spend fake money at the rate of $85 billion per month to stimulate growth?? No Federal Reserve has EVER done this. Ben is winging it on his thoughts, no history. And the people whom did the right things in saving money for their retirement are now shafted forever. They will have to spend all of their capital to keep up and once that is gone, then what, Mr. President and Mr. Ben?? All of those good people will be broke just like this administration has done to us. And the U.S.A. The young people make much less than the Boomers made and no wonder people have cut back on their spending. You know why, Ben and Mr. President? Because they do not have the money and no future. Just more broke people in the future. I am utterly in disbelief.

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