Fed Official Says Rates Need to Stay Low

Low interest rates are still needed in the U.S. to help the economy overcome difficulties in the real estate market, Eric Rosengren, president of the Federal Reserve Bank of Boston, said Wednesday.

The Federal Reserve has been holding rates at or near zero since December 2008 and promised last month to continue to do so for an “extended period.”

“Serious fiscal problems loom for state and local governments, the U.S. government, and governments around the world, particularly those that have expended large sums of money to recover from this financial crisis and recession,” Rosengren said.

Source: Associated Press, Jeannine Aversa (05/05/2010)