Federal Reserve Leaves Rate Alone And Is More Upbeat About Recovery

The Federal Reserve reaffirmed its pledge to keep interest rates low and decided not to take any new measures to hinder the economy.  The decision was made because the economy seems to be “expanding moderately.” There has been some improvement in employment and customer spending in recent weeks, but the housing sector remains depressed.

Benchmark rates for many loans including mortgages are expected to remain near zero until mid 2013.  The Fed plans to move 400 billion dollars of its bond portfolio into longer term securities.  This could ultimately lower long term interest rates.

According to the Fed, the economy has been showing signs of improvement and should show stronger gains in the final months of 2011.  They also caution the European debt crisis will continue to pose threats to recovery due to strains in global financial markets.

Gilbert’s unemployment rate is down to 8.7, interest rates are at record lows, and housing is more affordable than ever. Now is the perfect time to become a Gilbert resident.

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