Fed Should Not Change Rates

Oil is nearing $140 per barrel, and has very little signs of going lower. Today, Saudi Arabia announced its plans to increase production, which should lower the price of oil because of an increase in supply. However, oil still was high today. Many bearish reporters continually say the solution to the "oil crisis" is to raise the fed funds rate, which should lower inflation. The problem with this, is that oil is not the only crisis at the moment.
Our country is still sliding into a recession, and if the Fed raises the rates too early for our country to sustain, we could risk a very deep recession. The financial industries of our nation are performing terribly at the moment with the fallout of the credit crunch and subprime mortgage crisis. We need our financial markets to stabilize before we make a push that could potentially push our finances even lower.

In the end, what is more important? The price of oil, or our financial institutions? Oil can wait for the moment, we need to fix our finances before we can start to slow recession and recover the price of oil.

People are pointing too many fingers at the Fed. Yes, they are related to our government, and yes our economy is struggling at the moment. The problem is not that the Fed did something wrong, it is more that the government didnt place enough regulations on the mortgage lenders, which allowed banks to get caught at a bad time. It is the Fed's job to regulate monetary policy, and the government should be responsible for regulations.

Our finances are becoming extremely complex, and thus very vulnerable. Our government needs to evolve with our finacial markets to ensure we don't put ourselves in a position where we are overextending ourselves to try to be innovative

http://www.cnbc.com/id/25331527