The Federal Reserve Board met on Tuesday and announced that they were taking no new action to stimulate the US economy. The stated reasons are familiar to all of you who regularly follow ITR®, namely the underlying strength in Retail Sales and the improving employment trend. The promise to keep short term interest rates low until mid-2013 remains in place, as does the Fed’s program to keep long-term interest rates low through the purchase of long-term securities. Their thought is that they will stimulate borrowing by keeping rates low.
