How Low Can Interest Rates Go?
#spacer{clear:left}#abc #sidebar{margin-top:1.5em}zSB(3,3)Wow. The target for the Federal Funds rate falls from 1% to almost 0%. The most interesting part of today’s statement for me, is the admission that rates will stay this low for some time. Some key points from the statement: The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent… The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. In particular, the Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time… …over the next few quarters the Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and it stands ready to
