usatoday.com - 12/15/2008
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Economists expect the Fed's policymaking Open Market Committee to cut its short-term interest rate target, now at a scant 1%, to a record low of at least 0.5%, or further. The federal funds rate, which banks charge each other for overnight loans, is a benchmark for business and consumer loans. ...
Fed’s Race To Zero
traderdaily.com 12/15/2008 —
As the Federal Reserve considers rate cuts Tuesday, U.S. interest rates are approaching those of Japan, the nation which for years boasted the most easy monetary policy among major economies. The shrinking rate gap could drive Japanese investors ...
Hale "Bonddad" Stewart Is Scared
delong.typepad.com 12/16/2008 — The Federal Reserve reacts to the fact that the economy train has arrived in Depression City.
Stewart writes:
Hale "Bonddad" Stewart: The Fed's Kitchen Sink Interest Rate Policy : The Fed announced their policy of establishing "a target ...
The ACTUAL Fed Funds Rate is Already ZERO
mjperry.blogspot.com 12/16/2008 — WASHINGTON POST -- The Federal Reserve is widely expected this afternoon to cut interest rates for the 10 th time in just over a year, driving the rate it controls close to zero as it continues the most sweeping effort to stabilize the economy in ...
The End of Federal Reserve Open Market Operations As We Knew Them —
EconoSpeak
It is being widely noted that the latest Fed interest rate cut pretty much uses up that tool for stimulating the economy, even though zero is a floor only in convention, and we have seen negative interest rates in fact. But there is more going on here than has been remarked on. To a substantial ...
Interest rates fall —
The Skeptical Speculator
There already appears to be some favourable impact from the Fed's latest actions . Bloomberg reports that LIBOR was sharply down on Wednesday. The cost of borrowing in dollars in London for three months tumbled after the Federal Reserve chopped its key interest-rate target to as low as zero and ...
Ben is 'all in' —
BloggingStocks
Federal Reserve Chairman, Ben Bernake the poker player, went "all in" yesterday . Whether or not he wins, the pot remains to be seen. He lowered interest rates to just about zero and embarked on a new venture, which he calls "quantitative easing." This is a fancy rhetoric for the Federal ...
Even 0% Financing Doesn’t Mean It’s Free —
EconomistMom.com
Hey! Looks like it’s no-money-down, 0% financing for everyone these days! First we hear that rates paid on Treasury debt have fallen to essentially zero, and then that the Fed has matched suit with their key rate (slashing their target for the federal funds rate to a record low ...
The US Economy Has Become A “Fiat Economy” —
Daily Markets
Ask yourself this question: Why has the Federal Reserve essentially created a ‘zero interest rate policy’ for the United States today by cutting the Fed Funds rate to near zero?
If your answer is ‘to create economic growth’, then I must tell you that you are listening to Jim ...
US Fed adopts Islamic banking: zero interest —
The Emirates Economist
Wall Street Journal : The Federal Reserve cut its target interest rate Tuesday to historic lows between zero and a quarter percentage point and said it could expand a program of unorthodox lending and securities purchases. ... A number of official borrowing rates -- such as rates on three-month ...
ZIRP it is —
The Skeptical Speculator
The fed funds rate is officially zero now. Bloomberg reports : The Federal Reserve cut the main U.S. interest rate to as low as zero for the first time and shifted its focus to the amount and type of debt it buys, seeking to revive credit and end the longest slump in a quarter- century. The Fed ...
UAE central bank will not follow US Federal Reserve —
The Emirates Economist
Gulf News The UAE Central Bank said on Tuesday it would not cut interest rates if the US Federal Reserve eases its rate - the second time the country would refrain from mirroring the Fed. Until late October, the UAE had been keeping its benchmark overnight repurchase rate at the same level as ...
The Next Round of Ammunition —
Greg Mankiw's Blog
With the Fed having cut interest rates today to a target range of 0 to 1/4 percent, many people will be asking whether the central bank has run out of ammunition. A good question. Obviously, the next step is not going to be further cuts in the federal funds rate. But there is still more the Fed ...
Fed Policies —
EclectEcon
Following up on my post earlier today, why would a commercial bank lend in the federal funds market at 0.25% when they can get 1% on their reserves at the Fed? Will paying 1% on reserves deposited at the Fed have the effect of setting an interest-rate floor on lendable funds? And, if so, won't ...
Recognizing reality —
SCSUScholars
As Mark Perry noted this morning, the Fed Funds rate has been effectively zero for some time. This afternoon, this was made official . The central bank on Tuesday said it had reduced the federal funds rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is ...
Fed Cuts Interest Rate to a Range of Zero to 0.25 Percent —
Trading Goddess
Fed cuts target for key interest rate to record low, pledges to use all available tools. WASHINGTON (AP) -- The Federal Reserve has cut its target for a key interest rate to the lowest level on record and pledged to use "all available tools" to combat a severe financial crisis and prolonged ...
Zero Interest Rate Policy officially arrives —
The Mess That Greenspan Made
The Federal Reserve slashed their target short-term lending rate to a range of 0.0 percent to 0.25 percent and signaled the beginning of an era of "quantitative easing" where the central bank will buy a wide variety of assets to support the struggling U.S. economy. Just 15 months into the ...
'New tool box' likely to be focus of Fed's meeting —
BloggingStocks
What should investors focus on when the U.S. Federal Reserve announces its interest rate decision Tuesday at 2:15 p.m. EST? The amount of the cut in short-term interest rates? No. A rate cut in its benchmark rate of 50-75 basis points from 1% is all but assured, given the recession. The Fed's ...
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