Fed Cuts Rate to Between Zero-0.25%, Ready to Use All Tools

[¹²³]

The Federal Reserve cut the main U.S. interest rate to “a target range” of between zero and 0.25 percent and said it will do whatever is necessary to ease the longest recession in a quarter-century.

“The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability,” the Federal Open Market Committee said today in a statement in Washington. “The committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.”

Nine rate cuts in the past 14 months and $1.4-trillion in emergency lending have failed to reverse the economic downturn. Chairman Ben S. Bernanke said this month the central bank could expand its toolkit and try to unfreeze credit by buying Treasury securities and other assets.

“The focus of the committee’s policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve’s balance sheet at a high level,” the FOMC said.

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[maxiep]

The more the Fed cuts rates, the less power they have. There's no quick fix for this one. We Americans have overspent and financed our lives. Now we're going to have to paydown that debt. It's going to take years.

 

[¹²³]

The more the Fed cuts rates, the less power they have. There's no quick fix for this one. We Americans have overspent and financed our lives. Now we're going to have to paydown that debt. It's going to take years.

Yep, they are trying everything, but I doubt there is a "solution" in the near future. They have to stick to their plan and just control the demage.

 

[AgentDrazenPetrovic]

The solution is to give americans money!!!! that will get everyone out of this mess!!!!!

 

[¹²³]

The solution is to give americans money!!!! that will get everyone out of this mess!!!!!

How?

 

[maxiep]

Yep, they are trying everything, but I doubt there is a "solution" in the near future. They have to stick to their plan and just control the demage.

In reality they need to do the exact opposite. They need to let the market work, to let companies go into bankruptcy and to let houses be foreclosed upon. The market needs to clear to properly correct itself. What we're doing right now is making ourselves feel better without fixing the problem. In fact, we're making it worse.

 

[maxiep]

How?

I'm pretty sure your sarcasm detector is on the Fritz.

 

[¹²³]

I'm pretty sure your sarcasm detector is on the Fritz.

 

[¹²³]

The solution is to give americans money!!!! that will get everyone out of this mess!!!!!