MONEYWATCH
Fed support grows for economic stimulus
May 16, 2012
May 16, 2012
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CONTINUED...
much on the table."
Critics have expressed concerns that the central bank was raising the risk of higher inflation with its long-running campaign to keep rates low.
The Fed has kept its federal funds rate, the target for overnight bank lending, near zero since December 2008. That means consumer and business loans tied to that rate have also remained at super-low levels. The lower those loan rates, the more likely it is that consumers and companies will borrow and spend to invigorate the economy.
much on the table."
Critics have expressed concerns that the central bank was raising the risk of higher inflation with its long-running campaign to keep rates low.
The Fed has kept its federal funds rate, the target for overnight bank lending, near zero since December 2008. That means consumer and business loans tied to that rate have also remained at super-low levels. The lower those loan rates, the more likely it is that consumers and companies will borrow and spend to invigorate the economy.
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