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Has the Fed Lost Its Credibility

THOUGHT OF THE WEEK SYNOPSIS

• The Fed once again chose to keep interest rates at current levels, which is frustrating given how far we have come since the depths of the financial crisis.
• Unemployment and inflation have dramatically improved, so many investors were expecting to see the Fed adjust interest rates accordingly throughout the year.
• Although the Fed has destroyed much of its credibility, their decision to keep artificially low interest rates will not cause any major issues in the economy.

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