They are inflating the money supply and this hurts people who save. They say they won't raise rates until the end of 2014
Three years with short term interest rates near 0%.
Basically the Fed is trying to lure people into borrowing to stimulate the economy but this hurts people that rely on fixed income investments as there is no yield to be found. Not only does it hurt retirees but also insurance companies and pension funds who rely on fixed income.
These effects are far reaching based on the size of the US economy and puts pressure on Canada to keep its rates low also to stay competitive. It is a desperate tactic that hasn't been shown to work and unemployment is still a problem after all the money flooding they have been doing for the last few years so I am not convinced it will help but just makes a bigger problem down the road.....but also hurts people who need fixed income investments now......
http://gicdirect.com/?gclid=CL6XjNuM-60CFaYaQgodRzhYMQ 