Fed Interest Rate Pledge May Send Investors to Risky Choices

The Federal Reserve is trying to help savers by stimulating the economy with low interest rates. It may actually push them toward riskier investments for yield.

The Federal Open Market Committee said yesterday that economic conditions are likely to warrant “exceptionally low levels for the federal funds rate at least through late 2014.” The benchmark interest rate has remained near zero since December 2008 as the economy and housing market have struggled to recover.

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