Fed Decision Means a Few More Years to Tighten the Belt

FIRST PERSON | The Federal Reserve has decided not to raise interest rates until the year 2013. When I heard it, I was filled with a sense of disgust. Since the birth of our twins in 2008, we have watched the economy deteriorate and shrivel. I think the scope of the economy has taken its toll on us as a family. We have already seen the steady downward slope of our retirement plans. Our home is no longer big enough for our family, but we would not make enough of a profit with a sluggish real estate market to sell it and move to a larger home. My spouse works for a Fortune 500 company, but has only seen a 1 percent raise each year since 2008. The economy just is not rebounding the way we had hoped, but we feel the effects in so many ways.

The retirement plans have tanked. We watched at least three separate occasions that have taken the profits in these plans and spoiled them. We were just getting to a place where there was some rebound when the latest wave of stock market mayhem occurred. We are in our early 40s, so we have time. However, we are starting to feel like it may take forever before we can recoup the losses we have suffered in these plans the last three years.

We say consistently it is becoming increasingly more and more difficult to make ends meet. The economy’s persistence to remain sluggish has resulted in no raises for three years. This is combined with raises in the price of gas and groceries. Now that we have a growing family, we feel the pinch of this more than ever. We make sure we save, shop sales and use loads of coupons. It is the only way we can tighten the belt enough to keep our lifestyle the way it has been without significant sacrifices.

The Federal Reserve announcement means one thing for us: There is not going to be a quick solution to the problems of the nation or our own issues as a result of the economy. The Fed’s announcement only means we have a few more years to navigate through this storm, as does the rest of our nation.


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