Fed Will Keep Interest Rates Near Zero Through 2014

Does Bernanke have an incentive to work for Obama's reelection?

The Federal Reserve had already said it would keep interest rates near zero through 2012 and into 2013. Today, the Fed announced that this policy would remain in place through 2014 — and threatened further stimulus. Is this part of the “presidential cycle?” We’ll examine that theory more in tomorrow’s article. For now, just know that low interest rates means more inflation, and that’s bullish for gold and silver. Gold was up $8.50 per ounce today, while silver was actually down $0.08. Perhaps this a buying opportunity. Certainly, silver remains incredibly attractive at any price under $30 per ounce.

Does Bernanke have an incentive to work for Obama's reelection?