Sunday March 19, 2017
 

Federal Reserve Keeps Interest Rates Low

The Federal Reserve is still on course to inject up to $600 billion into the US economy in a bid to speed up the process of recovery for the economy.

The Federal Reserve is still on course to inject up to $600 billion into the US economy in a bid to speed up the process of recovery for the economy. By injecting that much money into the economy, the Federal Reserve also hopes to interest rates including that of mortgages to an incredibly low levels.

However, some financial experts do not seem to agree with the move by the Federal Reserve to continue pumping money, through the implementation of stimulus programs, into the economy. One of such strong critics of this program is the President of the Dallas Federal Reserve, Richard Fisher.

Mr. Fisher believes that though the economy has not reached its strong hold, it is at a position where the Central Bank can afford to halt its economic stimulus packages so as to allow the economy to pick up on its own accord.

Left with the most potential homeowners in the country, the Central Bank’s decision to sale off its short term securities in favor of acquiring long term securities that will help to keep mortgage rates at a very low rate is commendable. This will have helped to keep mortgages at an affordable rate for those who are still struggling to get jobs that pay well.

Though financial experts like Mr Fisher do not want the Federal Reserve actively working to ease off burdens which should be the responsibility of investors, they do not advocate the Fed increasing interest rates as that will affect the housing and mortgage sectors.

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