There's good news from The Fed. Over the weekend Federal Reserve Chairman Jerome Powell reaffirmed to help the American economy recover from the Covid-19 Lock-down, interest rates will not likely rise this year. University of St. Thomas economics assistant professor Dr. Daniel Prerez-Liston says this is really good news for the American consumer. "You can still afford to buy a house or buy a car or buy stuff with your credit card with very low interest rates. We're looking at continued low interest rates for the U.S. "
Dr. Perez-Liston says we haven't seen runaway inflation in decades and with states opening up allowing millions to go back to work, the country should see increased financial activity in 2021.
Lone Star College Economy Assistant Professor Hank Lewis explains why. "The Federal Board - and especially Jerome Powell the Board Chairman certainly believe that the economy is going to need some more time to recover and they don't want to hamper things by raising interest rates and discouraging things right away." Lewis says inflation should also stay tame, and dispels those who say the government is printing more money. "No that's not accurate! The United States DOES NOT print money to pay for anything. That causes hyper inflation."
Photo: Getty Images