Fed Head Bernanke Holds US Interest Rates at 5.25 pct

US interest rates were kept the same by the US Federal Reserve and its chief, Ben Bernanke.

Despite a crumbling US dollar and a shaking economy, the Fed said it would not be raising interest rates.

Bernanke and the Fed hinted that interest rates were not likely to rise anytime soon.

Analyst Sam Kirtley of The Gold Prices Newsletter said:

“The US Dollar is falling and soon it will break down through the key support at 80. The Fed can raise interest rates to temporarily save the US dollar, however this would damage the US economy. Lowering rates would have a very negative effect on the dollar but it would boost the economy. They have chose to stay put for the time being, which changes nothing. Gold is going up if the Fed raise rates, as the US economy will collapse and investors will move to gold as a safe heaven. If the Fed cut rates, the US dollar will plunge and gold will soar anyway. Today they kept rates the same, and gold is currently up $5.00! We think gold and gold stocks are a great investment at the moment.”

Do you think the US should raise or lower interest rates?

Should they lower rates to help the mortgage sector and companies like Bear Stearns, HBOS and stop companies like American Home Mortgage going bankrupt?

CLICK HERE to keep updated with the latest news, share a comment or problems with products and services. Follow us on twitter or read more news.