Fed Reserve new strategy
Recommend on Google+
A hat-tip to Thomas Rockall for updating me with this bit of news: In a major shift, the Federal Reserve will start announcing four times a year how long it plans to keep short-term interest rates at existing levels, according to minutes from its December policy meeting.
The change is intended to reassure consumers and investors that they will be able to borrow cheaply well into the future. The Fed’s first forecast for interest rates will be included in the economic projections it will issue after its Jan. 24-25 policy meeting.
The Fed has left its key short-term rate at a record low near zero for the past three years. In August, it said it planned to leave the rate there until at least mid-2013, unless the economy improved.
You can read more on its likely impact here.
blog comments powered by Disqus
ECONOMICS TEACHER RESOURCE NEWSLETTER
Join over 6,000 other Economics Teachers in the UK and around the world who receive the tutor2u regular Economics Resource Email Newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops + loads of great ideas for teaching economics from our blog authors.
