Fed to hold interest rates until 2015

Posted on 16th Apr 2012 in Offshore Interest Rates

The base rate of interest in the US may stay at a low level for the next few years.

This is according to Janet Yellen, vice-chair of the US Federal Reserve, who suggested there will only be a need for a change in monetary policy and a rise in interest rates if growth in the economy is slower than anticipated.

In a speech in New York last week, she stated there have been some "welcome" signs of improvement in the labour market in the US.

"Looking ahead, significant headwinds are likely to continue to restrain aggregate spending and progress in closing the remaining employment gap is likely to be quite gradual," added Ms Yellen.

She admitted the recent recession has been the worst financial crisis to have affected the US in longer than 70 years since the depression of the 1930s.

David Dillon, chairman and chief executive of Kroger Co, told Bloomberg last month that the overall economy and customer sentiment are improving.

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