Fed Doesn't Change Key Rate

By: Associated Press
By: Associated Press

The Federal Reserve repeats its pledge to hold interest rates at record lows to foster the economic recovery and ease high unemployment.

But its decision draws one dissent. Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, for the second meeting in a row opposes keeping the yearlong pledge.

The tension illustrates the Fed's challenge in deciding when to signal that higher rates are coming. Hoenig thinks the economy is strong enough for the Fed to telegraph that rates will rise soon to prevent inflation. But the others think the low rates will continue to be needed to feed the economic recovery.

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  • by Anonymous on Mar 17, 2010 at 06:26 AM
    Haven't they got it yet?High rates are what caused a lot of problems in the first place.Bring them back up and watch failure all over again.No one is happy with a reasonable profit,they want more which turns into greedy.Greed destroys and no one seems to get it.If so many of our jobs hadn't gone over seas or to Mexico we'd not had to lower so many things and cut many things.Don't they get that?How can we make them jobs come back?It is ruining the USA,No bombs needed.Nothing we do will work till JOBS are here to put people to work.We need to STOP buying from other countries before we can fix the USA.Plus we need to get out of the wars that are costing billions,yet getting no where.Think how much money NOT being in wars would do for this country.The wars are costing more a year then the social programs many are on now.Go figure.Poverty is taking over the USA.That's a bad problem,which will lead to many more problems.
  • by Anonymous on Mar 17, 2010 at 05:38 AM
    Obama is doing a very cynical job with this. He is allowing some of the work done by his predecessor to continue. If it fails, he does not look like an incompetant fool and it is blamed on his predecessor. If it succeeds, he looks like a genius.
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