Greenspan Promises Increases, Yet Rates Still Low

June 13, 2005 LOS ANGELES -- As most of us are aware by this time, in 2004 the Federal Reserve announced a campaign to gradually and measurably increase interest rates in attempt to keep inflation at bay. Although Alan Greenspan and Company kept reiterating that this was the active plan, we have seen rates stay at a low level rather consistently. Until last week, that is. Rates are at 40 year lows once again despite all the commitments in Washington.

The Fed has made dramatic attempts to keep rates in an upward loft, but to their surprise our economy has somehow counteracted their attempts.

In his testimony last week, Alan Greenspan, chairman for the Federal Reserve, said that his belief is that the American economy is facing imbalances, and added that the Fed has not yet brought to fruition its interest rate hike on a gradual and measured basis. - Article by Ben Pengreen for CMR Home Finance.