All Commentary
Thursday, January 26, 2012

Fed: Rates Will Stay Low through 2014

“The Federal Reserve, declaring that the economy would need help for years to come, said Wednesday it would extend by 18 months the period that it plans to hold down interest rates in an effort to spur growth.” (New York Times)

Illogic 101: Artificially low interest rates helped produce the crisis. Therefore the Fed will fix the economy by holding down interest rates for the foreseeable future.

FEE Timely Classic
“Interest Rates and the Business Cycle” by Glen Tenney