Fed Vows to Keep Rates Low

     The Federal Reserve has acknowledged Wednesday to keep the interest rates low. They said the economy is beginning to look up, especially in the housing industry. They also claimed they will continue to press forward with the stimulus campaign- which will keep interest rates low- until the economy shows more muscle. 

     At the last meeting, the Fed said they would keep rates incredibly low until about mid 2015. A program known as "QE3", in which the Fed buys $40 billion in mortgage backed debt every month, helps keep the rates incredibly low.

     However, on the flip side, the Fed is a bit concerned. In a statement they made recently, they said, "The committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions."

     Even though the unemployment still remains high at 7.8 percent, the fiscal cliff still looms at the end of the year, the global economy is struggling, and the U.S. GDP grew only by 1.3 percent for the second quarter.

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