The Federal Reserve said today that it will continue its $85 billion/month bond-buying program and leave the federal funds rate near zero in its continued efforts to stimulate economic activity.
Senior Fellow Barry Bosworth says the announcement is “sort of no news,” but offers his concern that rising interest rates on mortgages is “a little worrisome.”
Watch the interview on WSJ Live:
When asked for his thoughts on President Obama’s proposal to trade corporate tax rate reductions for investments in infrastructure and also the possibility of another fiscal stimulus, Bosworth replied that it looks “just virtually impossible” politically. “I don’t think there’s a basis for changing anything significantly on fiscal policy in the future,” he concluded.