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Federal Reserve
Fed needs to move on interest rates soon
Fed needs to move on interest rates soon

Federal Reserve policymakers meet Tuesday and Wednesday to discuss when to raise interest rates and how they will communicate those intentions without upsetting financial markets or the economic recovery. Unfortunately, the Fed is constrained by its own past missteps, and its credibility is at stake. Short term rates have been near zero since 2008, and along with quantitative easing — the Fed's purchases and continued holdings of long-term bonds — they have held down the whole structure of rates on bonds, mortgages and consumer loans to arbitrarily low levels and imposed significant distortions on the economy. Low rates discourage bankers from lending to businesses...