A new website is launching very soon, that will be dedicated to the discussion of Bonds, and everything to do with Bonds.

Bonds are an investment that allows you to loan money to a government or a corporation. In return, they promise to pay you a coupon, or interest, on the money you loaned them. After a predetermined period of time, the debtor agrees to repay the full principal.

Bonds are considered fixed income investments, because the coupon is agreed upon before hand and it does not change with changing market conditions. This is not true of the value of the bond, but it is true for the coupon. Bonds are particularly useful in low interest environments when inflation is low. To learn more about investment bonds visit the site ABC Bonds.

As expected, yesterday the Federal Reserve held the key interest rate at 2% as it attempts to stike a balance between inflationary pressures and an even further slowing of the economy.

The recent drop in oil prices, thought to be the main driver of upward inflationary pressures,  helped to shore up the Fed’s decision to stay put for another 2 months.

The Fed explained their decisition to hold interest rates at 2%:

Economic activity expanded in the second quarter, partly reflecting growth in consumer spending and exports. However, labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction, and elevated energy prices are likely to weigh on economic growth over the next few quarters. Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth.

Inflation has been high, spurred by the earlier increases in the prices of energy and some other commodities, and some indicators of inflation expectations have been elevated. The Committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain.

Although downside risks to growth remain, the upside risks to inflation are also of significant concern to the Committee. The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability. (Read more)