Fed sets up U.S. for long dreadful slog
The Kansas City Star
The Federal Reserve action Thursday to continue to hold down interest rates and buy $40 billion a month in mortgage bonds is the wrong action for the country.
The Fed’s response to the poor economy feeds the credit addiction in the U.S. instead of encouraging people to live within their means and save for the future.
The action builds on about 10 years of terribly low interest rates for people who value creating their own nest eggs and encouraging their children to save. For people on fixed incomes who depend on interest earnings from federally insured bank deposits, the Fed’s action is depressing news.
They have borne a large cost of federal fixes to the economy. The stock market, on the other hand, is drunk with jubilation that the easy credit party and low rates will go on.