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Disappointing Unemployment Numbers Point To Long Low Interest Rate Environment

Friday, December 3, 2010 - 3:00 PM
From the Bureau of Labor Statistics
The unemployment rate edged up to 9.8 percent in November, and nonfarm payroll employment was little changed (+39,000), the U.S. Bureau of Labor Statistics reported today.

From Reuters via Yahoo
Employment barely grew in November and the jobless rate unexpectedly hit a seven-month high, hardening views the Federal Reserve would stick to its $600 billion plan to shore up the anemic recovery.

From AP via Yahoo
Economists say it could take until near the end of this decade to drop the unemployment rate to a more normal 6 percent.

From Calculated Risk Blog
This is by far the worst post WWII employment recession.

The CR post has an interesting chart comparing the job losses of this recession with previous post-WWII recessions.
1
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Friday, December 3, 2010 - 5:05 PM
Stocks reacted favorably to the news as the NASDAQ hit a three year high. The Fed also indicated it may purchase even more Treasury Bonds in an effort to drive rates lower. This low interest environment indeed may last close to a decade. Seven year certificates of deposit yielding three percent are starting to look good. If someone like PenFed would offer a ten year CD yielding five percent it may be worth jumping on.
3
PurplesagePurplesage25 posts since
Oct 11, 2010
Rep Points: 73
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