{"id":47896,"date":"2009-11-24T15:45:00","date_gmt":"2009-11-24T20:45:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/fed-super-low-rates-could-fuel-speculative-bubble-2009-11"},"modified":"2009-11-24T15:45:00","modified_gmt":"2009-11-24T20:45:00","slug":"fomc-minutes-fed-admits-that-zirp-could-fuel-a-new-speculative-bubble","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/47896","title":{"rendered":"FOMC Minutes: Fed Admits That ZIRP Could Fuel A New Speculative Bubble"},"content":{"rendered":"<p><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4b02b50500000000001d5b79\" border=\"0\" alt=\"bernanke scary hands\" \/><\/p>\n<p>It was reassuring to hear the Federal Reserve admit today that its efforts to spur on an economic recovery by keeping interest rates law could fuel a new speculative bubble.<\/p>\n<p>The zero interest rate policy &#8220;could lead to excessive risk-taking in financial markets,&#8221; according to the minutes released this afternoon of the Fed&#8217;s closed-door meeting earlier this month. Fed officials think the current likelihood of a bubbl is &#8220;relatively low,&#8221; however.<\/p>\n<p>The Fed certainly doesn&#8217;t think the economy is about to come booming back. Fed policymakers said it could take &#8220;five or six years&#8221; for the economy and the labor market to be consistently healthy. But there outlook for this year is a bit brighter: they are now expecting the economy to contract just 0.5% versus the older forecast of a contraction from 0.6% to 1.6%. Of course, the meeting took place before the today&#8217;s revision of the third quarter GDP numbers.<\/p>\n<p>Here statement:<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"http:\/\/www.scribd.com\/doc\/23070169\/fomcminutes20091104\" title=\"View fomcminutes20091104 on Scribd\">fomcminutes20091104<\/a><br \/>\n<object id=\"doc_641902132700128\" classid=\"clsid:d27cdb6e-ae6d-11cf-96b8-444553540000\" width=\"100%\" height=\"500\" codebase=\"http:\/\/download.macromedia.com\/pub\/shockwave\/cabs\/flash\/swflash.cab#version=9,0,0,0\" name=\"doc_641902132700128\" align=\"middle\"><param name=\"movie\" value=\"http:\/\/d1.scribdassets.com\/ScribdViewer.swf?document_id=23070169&amp;access_key=key-7poy1j4a4h4s1danei&amp;page=1&amp;version=1&amp;viewMode=list\" \/><param name=\"quality\" value=\"high\" \/><param name=\"play\" value=\"true\" \/><param name=\"loop\" value=\"true\" \/><param name=\"scale\" value=\"showall\" \/><param name=\"wmode\" value=\"opaque\" \/><param name=\"devicefont\" value=\"false\" \/><param name=\"bgcolor\" value=\"#ffffff\" \/><param name=\"menu\" value=\"true\" \/><param name=\"allowFullScreen\" value=\"true\" \/><param name=\"allowScriptAccess\" value=\"always\" \/><param name=\"salign\" \/><param name=\"mode\" value=\"list\" \/><embed type=\"application\/x-shockwave-flash\" width=\"100%\" height=\"500\" src=\"http:\/\/d1.scribdassets.com\/ScribdViewer.swf?document_id=23070169&amp;access_key=key-7poy1j4a4h4s1danei&amp;page=1&amp;version=1&amp;viewMode=list\" quality=\"high\" pluginspage=\"http:\/\/www.macromedia.com\/go\/getflashplayer\" play=\"true\" loop=\"true\" scale=\"showall\" wmode=\"opaque\" devicefont=\"false\" bgcolor=\"#ffffff\" name=\"doc_641902132700128_object\" menu=\"true\" allowfullscreen=\"true\" allowscriptaccess=\"always\" mode=\"list\" align=\"middle\"><\/embed><\/object>\n<\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/fed-super-low-rates-could-fuel-speculative-bubble-2009-11#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/2008\/8\/fomc-minutes-fed-poised-to-take-harder-stand-on-inflation\">FOMC Minutes: More Jawboning About Inflation, Fed Expects Next Move To Be Up<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>It was reassuring to hear the Federal Reserve admit today that its efforts to spur on an economic recovery by keeping interest rates law could fuel a new speculative bubble. The zero interest rate policy &#8220;could lead to excessive risk-taking in financial markets,&#8221; according to the minutes released this afternoon of the Fed&#8217;s closed-door meeting [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-47896","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/47896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=47896"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/47896\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=47896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=47896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=47896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}