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Fed plan: focus on bank rate
NY Post ^ | February 11, 2010 | AP

Posted on 02/11/2010 3:18:19 AM PST by Scanian

Chairman Ben Bernanke said yesterday the Federal Reserve will shift its focus from the federal funds rate to boosting the rate it pays banks on money they leave at the central bank.

Doing so would raise rates tied to commercial banks' prime rate and affect many consumer loans. Companies and ordinary Americans would pay more to borrow.

Still, Bernanke repeated the Fed's pledge to hold rates at record lows for an "extended period." Economists think that means for at least six more months.

But Bernanke cautioned that the Fed eventually will need to raise rates to ease inflationary pressures.

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: bernanke; consumers; interestrates; primerate

1 posted on 02/11/2010 3:18:20 AM PST by Scanian
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To: Scanian

Didn’t Authur Burns pursue a similar program? It’s all coming back ...


2 posted on 02/11/2010 3:30:58 AM PST by Ken522
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To: Scanian
Companies and ordinary Americans would pay more to borrow.

Frigging great. Another CTI, camouflaged tax increase. Just what this country needs. This will create lots of new jobs.

And this man was just praised for the wonderful job he is doing.

BARF!

3 posted on 02/11/2010 3:43:46 AM PST by upchuck (The horse is in the pasture. The barn door is wide-open. Obama wants to know who made the hinges.)
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To: upchuck

He was recently confirmed for a new term so he feels free to try some devious crap with the money supply.

He has never been a straight shooter which is why he met with considerable opposition.


4 posted on 02/11/2010 4:32:33 AM PST by Scanian
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To: Ken522

Refresh my memory, when was Arthur Burns in charge? Who was president at that time?


5 posted on 02/11/2010 5:26:02 AM PST by pointsal
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To: Ken522
Hmmmmm

Arthur Burns

The folks in charge are not old enough to remember.

6 posted on 02/11/2010 5:33:18 AM PST by pointsal
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