Fed keeps interest rates flat

In their attempts to balance a housing market slump and a dropping US dollar, Bernanke and friends at the Fed have opted for status quo, keeping rates unchanged for the fourth straight time.

The ‘rock and a hard place’ they are stuck between is this: Do they lower interest rates to try to re-inflate the real estate market and slumping car sales, or do they raise interest rates to ward off inflation fears and prop up a dollar that has taken a tumble lately.

For now they are going with the ‘wait and see’ approach.

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Warren
Warren
13 years ago

We all know the US economy has effects on the Canadian economy, but we also know that they don't always march to the same beat. Furthermore regional economies in Canada are often at odds. Manufacturing in Ontario, energy in Alberta, and commodities in BC can be going all sorts of directions at the same time. It has happened in the past, and will happen again.

the pope
the pope
13 years ago

Anonymous: If you think that there is no economic connection between the US and Canada I've got a bridge to sell you.It's in great shape, and I'll even include a handsome laser-printed certificate of ownership suitable for framing. You could set up a toll booth and make millions!

Anonymous
Anonymous
13 years ago

Vancouver is not in the USA!

digi
digi
13 years ago

How reliable is that old 'they're going to drop rates' rumour? I would think that if inflation rears its ugly head the fed is more likely to raise rates and take the extra lumps from the housing market.