Economic Update: What's The Rush?

Standard & Poor's Deputy Chief Economist Beth Ann Bovino notes that in the Federal Open Market Committee's monetary policy announcement this week, the Fed pledged to keep its interest rate target at near zero through at least late 2014, extending earlier estimates. It's not surprising that they're not in a rush--inflation is expected to remain tame and they are concerned that the recovery could falter, with recent mixed housing news. Although the Fed noted the "economy has been expanding modestly" and inflation is modest, it pointed out that the eurozone crisis poses significant risks to the outlook.

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