4/23/2010

The U.S. Federal Reserve has kept short-term interest rates close to zero for more than a year, and its decision to keep them there is stirring up some dissent within the central bank, according to The Economist. Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said the policy is encouraging banks and investors to boost leverage and take on risk in their "search for yield." With gross domestic product rising, the stock market fairly healthy and modest gains in employment, debate about the initiative can't be put off forever, The Economist notes.

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