Fed maintains the historically low interest rates – nrc.nl

Fed maintains the historically low interest rates – nrc.nl

The New York Stock Exchange, they waited interest rate decision of the Fed in tension. AP / Richard Drew

Economy

The American system of central banks, the Federal Reserve maintains provisionally historically low interest rates, because a series of economic measures taken by the United States still bear fruit. That the Fed announced.

Since 2008 the interest rates virtually zero to stimulate economic growth. Low interest rates are favorable for investors. They can borrow cheap money to invest, then that instance in equities. Economic recovery in the United States faster than in Europe.

If growth is detected, unemployment falls and other signals in the job market are positive, the rate may be increased. Most economists expect the middle of next year, the first rate hike will occur.

The forecasts have been revised downwards compared to the previous quarter, presumably due to a disappointing first quarter. Fed policymakers expect the economy to grow only 2 to 2.2 percent. In June they were expecting a growth of 2.1 to 2.3 percent. In 2015, growth is expected to 2.5 to 3 percent, in contrast to an earlier forecast of 3 to 3.2 percent. The expectation is adjusted to four times per year.

In a statement, the Fed writes also that the buy-back program of government bonds is reduced. Ten billion dollars That program was designed to hold. Term interest on loans low

Read more about:

Federal Reserve