Should The US Fed Raises Interest Rates Amidst The High Unemployment Rate?
After leaving its key policy rate unchanged at a low of 1.0% for about a year, the US Federal Reserve started to raise its key policy rate. It took another six months for the Fed funds rate to reach 2.25%. All in, the low interest rate environment of 1.0-2.25% lasted for about one-and-a-half-year and the seed of the housing bubble and the subsequent bursting of the subprime mortgage debt in the US could had been sown since then. That was the scenario in 2003-2004.
Tracking The World Economy... - 23/08/2010
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