US Federal Reserve and Michael Janda

Michael Janda: And Australia is being dragged into the mire, writes Michael Janda, according to Australian Broadcasting Corporation. The US Federal Reserve is continuing a dangerous addiction with its latest decision to keep official interest rates near zero for almost seven years. With its decision to keep official interest rates near zero, the US Federal Reserve is continuing with a risky strategy. It is now nearly a decade since the Fed last raised rates, back in 2006, and financial markets have been allowed to become far too complacent about rates staying lower for longer than they ever have before. After all, many analysts blame the Fed under Alan Greenspan for laying the GFC foundations by keeping rates too low for too long between 2002-2004. The danger is that the Fed is promoting, and may already have created, the kinds of risky investment and asset bubbles that triggered the financial crisis in the first place. (news.financializer.com). As reported in the news.