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How the Federal Reserve boxed itself in

"Last week, the Federal Reserve announced it was lowering its forecast for the U.S. economy. The Fed now sees signs that economic growth is decelerating, job creation is soft and that deflation — not inflation — is the greater threat. In response, the Federal Open Market Committee took the unprecedented step of declaring they will leave interest rates at zero until mid-2013.  This policy announcement of “Two more years!” is a tacit admission that the U.S. Central Bank has painted itself into a corner."

Read the full story at The Washington Post

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