In 1965 the Four tops released what has become their signature tune; “It’s the Same Old Song”. For fun and a blast from the past check it out here on You Tube .
What does this song have to do with Dr. Ben Bernanke the Chair of our Federal Reserve ? Dr. Bernanke once again last week stated very clearly, with reinforced emphasis that the Low Interest rate policies of the Fed will remain in place until economic activity in the country becomes sufficient to get the unemployment rate down to 6.5 %.
It has become his signature song. Here are some quotes from his news conference that add emphasis, and should relieve any remaining doubts about what monetary policy will hold for our future. he wants it to be very transparent to the public what he is doing :
” By tying future monetary policy more explicitly to economic conditions, this formulation of our policy guidance should … make monetary policy more transparent and predictable to the public”
“The central bank will look at a range of indicators, not just the rates of unemployment and inflation, in determining when to finally push overnight borrowing costs higher, adding that the Fed was not on “auto pilot.”
“Reaching the thresholds will not immediately trigger a reduction in policy accommodation,” Bernanke said. “No single indicator provides a complete assessment of the state of the labor market.”
“This new framework is consistent with the earlier calendar guidance, because we do not expect the jobless rate to reach 6.5 percent until sometime in 2015”
We’ve empasized in our Blog that Bernanke has been very consistent in his prononcements on this policy for almost thee years now. Interest rates will remain low into 2015 !!!
The lesson I’ve learned is Interest rates are going to remain low. The action I call on you to take ? If you want to Stop Leasing ! and own your business property 2013 will be a great year to do it. Properties can be acquired at affordable prices, combine that with low interest rates and more accomodating lenders you can lock your real estate costs in at levels that add to yoru profitablilty.
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