The financial crisis is caused by too much loose credit and they try to stop a recession by making money even cheaper
It's like giving a drug addict more drugs instead of having him suffer in cold turkey and recover. In the end, the addict will die.
America is gone case. It will be okay in the short term but it will become third world soon as the printing presses go on non stop.
Fed Cuts Key Interest Rate To Between Zero and 0.25%
Topics:Ben Bernanke | Federal Reserve | Stock Market | Central Banks | Credit | Banking
Sectors:Financial Services | Banks
By Albert Bozzo, Senior Features Editor | 16 Dec 2008 | 03:04 PM ET
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The Federal Reserve slashed the 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 recession.
The central bank reduced the federal funds rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is down from the 1 percent target rate in effect since the last meeting in October.
Fed Rate Cuts
CNBC.com
Federal Reserve Chairman Ben Bernanke and his colleagues also pledged to use "all available tools" as they struggle to contain a financial crisis that is the worst since the 1930s and a recession that is already the longest in a quarter-century.
"There is no more room to cut rates, as the target cannot go negative," said economist Chris Rupkey of Bank of Tokyo-Mitsubishi. "Quantitative easing will be the new way for the Fed to stimulate the economy going forward."
In its statement, the Fed underscored its committment to use extraordinary measures, including using its balance sheet to support the credit markets. The Fed restated its intention to buy large quantities of mortgage-related debt to lower rates on home loans, a plan it first mentioned more than three weeks ago.
It's like giving a drug addict more drugs instead of having him suffer in cold turkey and recover. In the end, the addict will die.
America is gone case. It will be okay in the short term but it will become third world soon as the printing presses go on non stop.
Fed Cuts Key Interest Rate To Between Zero and 0.25%
Topics:Ben Bernanke | Federal Reserve | Stock Market | Central Banks | Credit | Banking
Sectors:Financial Services | Banks
By Albert Bozzo, Senior Features Editor | 16 Dec 2008 | 03:04 PM ET
Text Size
The Federal Reserve slashed the 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 recession.
The central bank reduced the federal funds rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is down from the 1 percent target rate in effect since the last meeting in October.
Fed Rate Cuts
CNBC.com
Federal Reserve Chairman Ben Bernanke and his colleagues also pledged to use "all available tools" as they struggle to contain a financial crisis that is the worst since the 1930s and a recession that is already the longest in a quarter-century.
"There is no more room to cut rates, as the target cannot go negative," said economist Chris Rupkey of Bank of Tokyo-Mitsubishi. "Quantitative easing will be the new way for the Fed to stimulate the economy going forward."
In its statement, the Fed underscored its committment to use extraordinary measures, including using its balance sheet to support the credit markets. The Fed restated its intention to buy large quantities of mortgage-related debt to lower rates on home loans, a plan it first mentioned more than three weeks ago.
