Every silver lining has its cloud.............

The silver lining is for us borrowers:

"The Fed’s Open Market Committee (known affectionately as the FOMC) took that one better on January 25 with a statement that the federal funds rate would stay at its current historic low level 'through at least late 2014.' Another 18 months of incredibly low interest rate stability seems in store for the U.S.economy."

The cloud is for those seeking even a modest return on their
savings accounts:

"While the Fed’s announcement can be construed as good news for businesses and consumers that are net borrowers, it is simply more pain and anguish for net savers. Millions of retirees had done all the right things over the years…investing in stocks and then shifting to bonds and certificates of deposit in later years.......Millions of retirees assumed a reasonable level of interest income from FDIC-insured financial institutions that would essentially be risk free (allowing them to sleep at night), while providing a consistent flow of income……not so fast."

All quotes are excerpted from our favorite economic futurist
Jeff Thredgold's newsletter - here.