This ought to drive Ron Paul crazy on his way out the door from Congress. The Federal Reserve says it plans to keep its key short-term interest rate near zero at least until the unemployment rate drops below 6.5 percent and inflation rises to 2.5 percent, reports The Associated Press.
That plan adds detail to what the Fed had said before: that it expects to keep the rate low until at least mid-2015. In a statement Wednesday after its final policy meeting of the year, the Fed also said it will keep spending $85 billion a month on bond purchases to drive down long-term borrowing costs and stimulate economic growth.
Not everybody's so pleased at the moves, which they argue amounts to "money printing". "PETITION: Change The Name Of The Federal Reserve To The Magical Magic Factory," tweeted journalist James Poulos (@jamespoulos).
And Rich Riker (@richriker), a former New York Stock Exchange member, tweeted, "oh, so the Federal Reserve treasury purchase also has more than one speed, guessing fast and faster but has no off switch".
Via The Associated Press.