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Fed to keep key interest rate low

The Federal Open Market Committee said unemployment rates should be at 6.5 percent before the

interest rates would be increased. As we are approaching this percentage the decision was made on

Wednesday by the Federal Reserve to keep the key interest rates at a record low. They made this

decision based upon the sub-par U.S. economy. The rates will remain low until the U.S. sees a vast

improvement in wages and unemployment.

After this announcement was made the stock prices rose. The yield on the 10-year Treasury note went

up to 2.59 from the 2.56 percent prior to the announcement.

Also, The Central Bank released their forecast for growth. They expect a slower than normal growth for

the next two years. They predict that the economy will grow an estimated 2.1 percent this year, which

is down from their June forecast which was 2.2 percent.

Although the number of jobs in the U.S. is at the highest level we have seen in 13 years and layoffs have

decreased, economists believe we won’t see short-term rates increase until mid-2015.

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