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The Federal Reserve has signaled that interest rates will not rise until the economy begins to show concrete signs of recovery. Short-term interest rates will remain low for an “extended period” of time according to the Fed and outside ovbservers say that this means at least a six month delay in any hikes targetted for the fall between September and November.

The Fed tried to downlplay these numbers, releasing the minutes from their March 16th meeting pleding that this “extended period” is contingent on the evolution of the economy rather then a set amount of time. This could mean that rates could rise sooner or later if conditions warrent it. This is the usual language given by the Fed as it doesnt want to surprise global markets or give them guarantees about it either.

Economists still believe that the economic recovery remains very fagile. Housing markets are still dependant on government support and one in ten americans are still out of work. Incomes have not been growing so businesses are loath to hire more or risk investing to expand their capacity and these factors require that interest rates remain low expecially when there are no substantial inflationary pressures eroding the dollars purchasing power.