Sound Off: Why are interest rates so low and how long will they stay this way?
Dec. 21, 2020
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Q: Why are interest rates so low and how long will they stay this way?
A: The Federal Reserve lowers interest rates in order to stimulate growth during a period of economic decline and uncertainty, which means that borrowing costs become cheaper.
Low interest rates are good for homeowners as it reduces their monthly mortgage payments. The interest rates are so low largely because the economy is so weak.
Interest rates are likely to stay low for years as the economy fights its way back from the coronavirus pandemic, according to Federal Reserve Chairman Jerome Powell. He was quoted as saying “We think that the economy’s going to need low interest rates, which support economic activity for an extended period of time it will be measured in years. However long it takes, we’re going to be there we’re not going to prematurely withdraw the support that we think the