Fed Keeps Interest Rates Near Zero

Wednesday, August 10, 2011

In the wake of Standard and Poor's decision to downgrade the U.S. credit rating, and an economy still struggling to keep its head above water, the Federal Reserve decided yesterday to keep the nation's interest rate close to zero through 2013. The rate has been static for the past two years. The response on Wall Street seemed mixed. At first stocks took a bit of a dive, but they recovered.  The Dow closed up 429 points yesterday after a late rally.

Louise Story, Wall Street and finance reporter for The New York Times, tells us what impact this decision will have and what the Obama administration needs to do to right get the economy moving again.

Guests:

Louise Story

Produced by:

David J Fazekas

Comments [2]

listener

Is it rather strange for the Fed to make a freeze through 2013 which just so happens takes us past the Presidential election? Is the Fed timing vital economic decisions that impact the nation to revolve around the President's personal political agenda? Could the same be said for the debt ceiling crisis that could have been avoided by it being raised quickly last year?

Aug. 10 2011 02:10 PM
Dana Comfort from New York

Will the Federal Reserve's commitment to keep interest rates near zero until mid 2013 mean that home mortgage interest rates will likely remain very low as well untill mid 2013?

Aug. 10 2011 09:04 AM

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