Federal Reserve to press interest rates toward zero percent

December 14, 2008 by · Leave a Comment
Filed under: Policy News 

Well this aligns with most analyst predictions of a zero-interest rate environment coming to America.   This can only last for so long, at some point interest rates will have to rise to pull this excessive money that has been injected into the system and if our fundamental problems with the destruction of the middle class is not solved then it will just crush the economy again and make things even worse.  How long will it take until we start hearing real solutions from our officials that solve the real problems and does not reward people that make problems?

News:

The U.S. Federal Reserve is expected to drop interest rates close to zero on Tuesday, but anticipated remarks on unconventional methods to dispel a year-old recession are what will really matter.

Economists forecast a clear statement that the U.S. central bank will aggressively deploy so-called quantitative easing measures to shelter the economy from a steepening downturn, but do not expect details of what steps it will actually take.

 

Those words would accompany a decision by the Fed to lower its target for overnight rates by at least a half-percentage point, economists believe.

 

A half-point cut would take the bellwether federal funds rate to just 0.5 percent, the lowest on records dating to July 1954, as the central bank battles a recession many think will stretch well into next year.

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