Fed to Keep Rates at Record Lows at Least Through Mid-2013

The Federal Reserve pledged for the first time to keep its benchmark interest rate at a record low at least through mid-2013 to revive a recovery that’s “considerably slower” than anticipated.

The Federal Open Market Committee also discussed a range of policy tools to bolster the economy and said it is “prepared to employ these tools as appropriate,” it said in a statement today in Washington. Three members of the FOMC dissented, preferring to maintain the pledge to keep rates low for an “extended period” without a specific timeframe.

link

The Fed is going to print a lot of money, they'll print whatever they feel is necessary to prop up the stock market and Treasury market. These polices will be very inflationary, thus devastating to anyone living on a fixed income.

Another move of brilliance and genius from the people who have brought us unemployment chronically stuck above 9%. I notice the Dow went into free fall when they said this. It recovered, but it's like Obama's speech yesterday. When just opening their mouths cause markets to fall, perhaps just shutting up and going on a vacation for a few MONTHS isn't a bad idea for the whole bunch of them.