Citing an ongoing public health crisis (i.e., the pandemic) that “will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” the Federal has just reaffirmed its commitment to maintaining a low-rate environment, “until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment” and inflation has risen to 2 (plus) percent.

In addition, “the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses.”

Comments from Plugged-In Readers

  1. Posted by [JJBiddyBean]

    We are at a permanently high plateau of stock and housing prices driven by ever lower interest rates

    • Posted by Kyle S.

      It’s not like interest rates can’t ever go up.

    • Posted by ST

      Agree 1000%

      I would also add high stock and housing is creating a 2 tier society – the have and the have not -, as well as hurting innovation….

    • Posted by AJ

      Cash, the commodity.

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