Fed Says "No" to Raising Interest Rates

For the time being, short-term interest rates will remain the same at 5.25 percent. In a much anticipated announcement, the Federal Reserve Bank said Tuesday that, although it would not raise rates, it indicated that rates may indeed rise should inflation occur.

Also unchanged was the discount rate, which will remain at 4.75 percent. The discount rate is used by the Federal Reserve's 12 district banks who provide direct loans to banks and financial institutions.

Should rates have risen, this would have been the third time in 1999. Typically, the Fed raises rates to slow down the economy and keep inflation to its minimum.

You may like these other stories...

For the first time since 2006, more than 50 percent of CFOs believe the US economy will show signs of improvement over a six-month span rather than remain the same or worsen, according to a new study from Chicago-based...
By Jason Bramwell, Staff Writer CPAs in New Jersey, New York, and Pennsylvania believe economic conditions in the United States will likely be the same one year from now, and while they predict higher business revenues...
By Jason Bramwell Managers in accounting, finance, and IT are cautiously optimistic about their hiring plans for the fourth quarter of 2013, according to a new hiring outlook survey from staffing firm Brilliant. ...

Already a member? log in here.

Upcoming CPE Webinars

Oct 22This webinar will include discussions of important issues in AU-C 800, Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.
Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.