How Low Can Bernanke Go?
Ben Bernanke and his squad of rate setters are expected to cut interest by as much as three-quarters of a point on Tuesday. With rates already at 1 percent, we mortals are left wondering what the Fed chief plans to do when he runs out of rates to cut. Update
Ben Bernanke and his squad of rate setters are expected to cut interest by as much as three-quarters of a point on Tuesday. With rates already at 1 percent, we mortals are left wondering what the Fed chief plans to do when he runs out of rates to cut.
Upate: Rates go as low as zero.
Rooted in Truth.BBC:
US interest rate-setters, led by Federal Reserve chairman Ben Bernanke, are expected to cut rates from the current level of 1% on Tuesday.
They are expected to lower it at 1415 EDT (1915 GMT) to 0.5% or even 0.25%.
As they run out of room for further cuts, the policymakers may give details of what other tools they plan to use.
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Market forces are colliding as another U.S. financial crisis brews. Meanwhile, sit tight on the roller coaster.
The September/October issue of Foreign Affairs features an article titled “Print Less But Transfer More: Why Central Banks Should Give Money Directly To The People.” It’s the sort of thing normally heard only from money reformers and Social Credit enthusiasts far from the mainstream. What’s going on?
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