Finance expert Mike Periu on the Federal Reserve’s announcement that it will keep interest rates low to help spur job growth.
Will Remain Very Low for the Foreseeable Future
The Federal Reserve, the central bank of the United States, announced that its main focus will now be on lowering the unemployment rate. It plans to keep interest rates at historically low levels until the unemployment rate is below 6.5 percent. The last time the country experienced that rate of unemployment was in late 2008. By keeping interest rates low, the Federal Reserve expects to incent businesses into borrowing money for expansion and hiring. Part of the reason why the Federal Reserve is able to maintain this policy is because inflation is under control. When rates are too low, it can lead to inflation but that hasn’t been the case lately and no material change is expected in the inflation rate for the time being.
About Mike Periu
Mike is a seasoned executive with experience in small business finance and management. He is the founder of Proximo, LLC a leading provider of corporate, consumer and small business education and training services with an emphasis on finance and technology.
Mike Periu is also a leading national voice for individual empowerment through financial education and entrepreneurship. He has been interviewed over 500 times in national and international media, including NBC, Univision, CNN en español, Telemundo, HITN, TVE, RTE, SBS, MegaTV and others.
Mike writes regularly for American Express OpenForum, Yahoo! Finanzas and is a Huffington Post contributor.
Mike has degrees in Finance and International Business from Georgetown University. He is on the Board of Directors of the Council for Economic Education and was a Fellow at the Kauffman Foundation’s Labs for Enterprise Creation.
