Making Money Alert – FREE
01/25/2012
Today, we received word from the Federal Reserve that it’s going to be easy money at least until the end of 2014. The Fed flat-out stated that it isn’t likely to raise interest rates for about three years, and that’s much later than the central bank’s previous call for rates to remain at rock-bottom levels until mid-2013. The move clearly is an attempt to continue bottle-feeding an ailing economy back to health. While this coddling might be good for the equity markets, so far, access to easy money hasn’t been able to right our economic ship. In the Fed’s statement, it repeated its view that the economy faces “significant downside risks.” However, the central bank offered little to suggest it was close to launching another round of bond-buying, or what’s now commonly known as quantitative easing. Bill Gross, co-chief investment officer the PIMCO funds, called what the Fed was doing, “QE 2.5.” I think…