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Federal Reserve Maintains Super-low Rates |
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Written by Users Idea
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Saturday, 29 August 2009 |
In the bid to stimulate the economy, the Federal Reserve has taken steps to ensure that the interest rates for the country remain at a record low. On the other hand, the Federal Reserve also predicts that the economy is indeed recovering, but at a much slower pace. And since the economy is recovering at a slower pace, the Federal Reserve predicts that companies might start hiring workers at Q1 2010.
However, the Federal Reserve also cautioned that with the country’s interest rates fixed at a record low, this might pose a risk that could fuel a speculative bubble in the country. It seems that the low interest rates might spark an excessive risk-taking behavior in the financial market.
Personally, I believe that the low interest rates can help restore consumer confidence of the market. For example, if you happen to be planning to purchase a house, I’m pretty sure that this is definitely the right time to purchase properties.
Do you think that there is a speculative bubble waiting to explode, as predicted by the Federal Reserve?
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