Interest Rates to Stay Low
NEW YORK (CNNMoney) — U.S. stocks rallied Monday after Fed chairman Ben Bernanke’s comments on the job market gave investors reason to believe interest rates will stay low.
In a speech to fellow economists, Bernanke said, “We cannot yet be sure that the recent pace of improvement in the labor market will be sustained.”
He added that the Fed’s “accommodative monetary policies” should help reduce high unemployment over time.
The comments reaffirm investors’ expectation that the central bank will keep interest rates low for a long time, and that the Fed will act if the economy deteriorates.
