Federal Reserve: Bankers sound (almost) upbeat

(MoneyWatch) COMMENTARY In central bank-speak, the Federal Reserve sounds practically upbeat! Since the last Federal Open Market Committee in January, the economy has been "expanding moderately," "labor market conditions have improved," and the European debt crisis has cooled (In its usual buzz-kill fashion, Fed officials also felt compelled to warn that Greece's ongoing fiscal struggles could harm the U.S. economy.)

As expected, the Fed said the economy remains weak enough to warrant "exceptionally low levels for the federal funds rate at least through late 2014," but not weak enough to justify any new stimulus plans to boost growth. The central bank's interest rate target has hovered at 0 to 0.25 percent since December 2008; the last rate increase was almost six years ago, on June 26, 2006.

Fed meeting: First hint of tightening?Where to stash your cash
Fed Statement

Despite a recent surge in the price of gas, the Fed expressed confidence that the increase is temporary and that inflation will remain under control. Households and businesses have continued spending in recent months, largely shrugging off rising oil prices and falling home prices. 

Still, following the latest Fed update all I could think was, "Pity the poor saver!" As my colleague Allan Roth has pointed out, you don't have to take the low interest rate world lying down. To improve your bottom line, consider the following alternatives:

• Shop credit unions
• Review depositaccounts.com for better deals
• Buy longer term CDs with minimal early withdrawal penalties
• Purchase Series I Savings bonds

Jill Schlesinger

Jill Schlesinger, CFP® is the Emmy-nominated business analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and chief investment officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.

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