Meanwhile, the longer the low-interest-rate policy is extended, the greater the risk that the resulting speculation could bring down the economy. This can be because asset bubbles eventually collapse or because consumer borrowing hits a wall, or both. Either way, the outcome of the tight-rope act depends on whether job growth can fundamentally improve the economy before that happens. That would be the best outcome for the economy -- and for CD, savings and money market rates.In the meantime, this leaves depositors in the same position as the Fed -- watching the economy's tight-rope act while waiting for job growth.
The Tight-rope Economy
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