Fed to Keep Rates Low Despite Pickup – WSJ.com

Posted by Jason | Posted in Economics, Government | Posted on 05-11-2009

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Translation: “We are going to continue to print money in hopes of tricking consumers and businesses into spending money. We know it will create false growth and the possibility for hyperinflation, but we are so smart we can stop it by driving the economy back into recession. Trust us. Look how good we’ve been at this.”

BY JON HILSENRATH

The Federal Reserve affirmed its plan to keep interest rates “exceptionally low” for a long time despite signs of economic recovery. But the Fed began to lay rhetorical groundwork for an eventual shift in its stance, suggesting that when the unemployment rate falls or if expectations of inflation turn up, it could change course.

“Economic activity has continued to pick up,” the Fed said in a statement following a two-day meeting. It noted that consumer spending has improved, housing activity has increased and businesses were retrenching at a slower pace.

Fed officials voted unanimously to maintain their target for the …

via Fed to Keep Rates Low Despite Pickup – WSJ.com.

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