Coral Gables Debt Surge–Take Note, Interest Rates Will Stay Low

One justification for the Debt Surge in Coral Gables for its so-called Renaissance is that the city will lose a window opportunity of low interest rates.  This is nonsensical since interest will stay low for a long time, and the dange of overspending on the Renaissance projects is far greater that the rush to refinance now.

The following is from today’s Federal Reserve statement:

To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent.  The Committee continues to anticipate that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate for an extended period.

via FRB: Press Release–FOMC statement–June 22, 2011.