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Bernanke: low rates still needed to help economic recovery
U.S. Federal Reserve Chairman Ben Bernanke reacts as he testifies before the House Committee on the Financial Services semi-annual monetary policy report on Capitol Hill in Washington, July 18, 2012.
Credit: Reuters/Jason Reed
WASHINGTON |
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Tuesday the U.S. economic recovery is still fragile and low rates are necessary to promote stronger growth and bring down the jobless rate.
"Interest rates are low because our economy is still in a fragile recovery," Bernanke told a town hall meeting in Washington with educators.
"Lower rates are intended to restore more normal levels of employment and growth."
In addition, he said "the European crisis is slowing our economy," along with other factors.
(Reporting by Mark Felsenthal; Editing by Neil Stempleman)
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Not working as intended dude! How about trying somthing else so I can get at least 1% on MY savings?
this is true. But this is kind of different than any trough seen. So i guess I don’t really agree that this time using this theory is working out so well. Low rates should have validated his higher employment, higher growth rate theory 5 quarters ago. There is not a lot of excitement anywhere about borrowing and taking on installments in order to purchase equipment or upgrade facilities. We are overly injected with cash yet we aren’t seeing much power in the velocity of money going on. These very low rates are really hurting more people than they are helping. Have you tried finding a decent fixed rate annuity these days? I guess he’s got his magic crystal ball and he sees low rates as being the right way to go. I just think we are in need of some creative analysis of the yield curve.
http://www.buzzfeed.com/mhastings/exclusive-the-pentagons-shocking-cover-up-of-the
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