Friday, November 11, 2011

Marc Faber believes the Fed will keep rates near zero even longer than 2013

Marc Faber believes the Fed will keep rates near zero even longer than 2013.

In his November commentary, he points to the opinion of Chicago Federal Reserve Bank President Charles Evans, who wants the Fed to "commit itself to keep short-term rates at zero until the unemployment rate falls below 7 percent or the outlook for inflation over the medium term goes above 3 percent."

If Evans has his way, Dr. Faber extrapolates that rates could "stay at zero for five or even 10 years (and negative in real terms)." Based on Dr. Doom's prediction, one could infer that gold could continue its bull run for several years to come.

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