The US Federal Reserve announced today that Americans can enjoy at least 2 more years of low interest rates -- and, most likely, the cheap loans that come from them. Fed representatives said it would keep interest rates close to zero until at least mid-2013, guaranteed.
The move was an unprecedented one, designed to stop the crazy drops in stock values seen over the past 2 weeks. And it worked: Wall Street rallied within hours of the announcement and the Dow finished up nearly 430 points for the day, landing at 11,240 at the closing bell.
Most believe that promising to keep rates low shows that the Fed expects the US (and probably world) economy to remain weak for much longer than previously thought. Fundamental problems in Europe and the US have demonstrated very clearly that the Great Recession may not have totally ended at all.
We say: This is good news if you're trying to get a home loan, car loan, or pretty much any other loan. Credit will remain cheap for awhile, despite the recent downgrading of US debt. Now the trick is to find a job and/or other way to earn money so you can actually buy big-ticket items again... something that is much easier said than done right now!
Learn some mo': Stocks Soar After Fed Pledges Low Rates Into '13
Learn some mo': Stocks Soar After Fed Pledges Low Rates Into '13
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