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Fed Risks Credibility Loss With 2015 Rate Pledge, CFS Says

The Federal Reserve’s promise to hold borrowing costs at record lows into 2015 risks a loss of its credibility and a downward spiral in financial markets, according to the Center for Financial Stability.

Fed policy makers began a third round of debt purchases last month and said it will probably hold the federal funds rate close to zero “at least through mid-2015.” Since January, the central bank had said the rate was likely to stay low at least through late 2014.