Federal Reserve Board meeting

(HawaiiNewsNow) - The Federal Reserve Board begins a two-day meeting today. The question is whether there is anything more they can do.

The economy is slow because consumers and businesses alike are unwilling to spend, and the biggest banks, sitting on huge sums of cash, are unwilling to lend.

The fFd has already committed to keeping interest rates really low for two years.

That may have arrested a stock market plunge on whatever day they made that promise.

But otherwise it had no effect - everybody's waiting for someone else to spend.

The Fed is also buying treasury bonds, which helps lower the interest paid on the federal debt.

Dissidents of the Fed think it actually defers growth when businesses know interest rates will remain low.

Their thinking it, why expand today when you know you can do it just as cheaply next year?