Ben Bernanke Says Low Rates Necessary

By on March 26, 2010

Jeannine Aversa reported that Ben Bernanke, in testimony before Congress yesterday, continues the policy of keeping interest rates extremely low.

Bernanke, in testimony to the House Financial Services Committee, essentially repeated the rationale behind the Fed’s decision last week to hold rates near zero. He cited still-fragile economic conditions, and noted that inflation is low, which gives the Fed leeway to keep rates at rock-bottom levels.

SMA Comment: It’s obvious that Bernanke is terrified of raising rates in fear the economy will not survive another downturn in housing without plunging into depression.

Source: Yahoo Finance
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