Federal Reserve Chairman Ben Bernanke said yesterday, “The target for the federal funds rate is likely to remain near zero for a considerable time after the asset purchases end…” He went on to hint that the target could even endure long after the jobless rate in the United States hits 6.5 percent or lower. Policy makers are considering holding over lower rates to keep the fledgling U.S. economic recovery on track. By distancing rate hikes from quantitative-easing (QE) tapering, Bernanke likely will keep people invested in the market. Reassurances like this one from Bernanke can go a long way to assuaging investors, but will they be enough to support an economic rebirth once the $85 billion a month in support has ended?
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
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Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: