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Fed vows to keep a lid on rates

By Sheyna Steiner · Bankrate.com
Wednesday, June 20, 2012
Posted: 12 pm ET

Interest rates will stay low for the foreseeable future, the Federal Reserve's monetary policy committee announced Wednesday.

The announcement came after a two-day meeting at which economic data were parsed for underlying trends. Though there have been some bright spots in the economy since the last meeting, much of the economic data have been less than encouraging, particularly the employment report for May.

Last month, only 69,000 jobs were added to the economy, and the unemployment rate rose to 8.2 percent. That followed the disheartening April report in which only 115,000 jobs were added.

Rates on auto loans, credit cards, certificates of deposit and savings accounts are all directly or indirectly linked to movements of the federal funds rate.

While low interest rates benefit borrowers, savers continue to suffer from the lack of decent yields, which may come with another set of long-term implications.

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