Posted on 12/16/2008 11:35:21 AM PST by Sub-Driver
Fed Cuts Rates to Historic Low
By BRIAN BLACKSTONE and MAYA JACKSON RANDALL
WASHINGTON -- U.S. Federal Reserve officials on Tuesday slashed official interest rates to an historic low range to combat a deepening recession and signaled they will keep rates "exceptionally low" for some time amid rapidly waning price pressures.
Officials also signaled a new phase for policy in which lending programs financed by the Fed's ballooning balance sheet, a process known as quantitative easing, replace the federal funds rate as the Fed's primary policy tool.
The Federal Open Market Committee voted unanimously to reduce the target fed funds rate for interbank lending from 1% to a range of zero to 0.25%, the lowest since the Fed started publishing the funds target in 1990. The market-determined effective fed funds rate already has already hit record lows in recent weeks. (Read the Fed's statement.)
Economists had expected a smaller cut of just 0.5 percentage point, and hadn't envisioned the Fed setting a range.
(Excerpt) Read more at online.wsj.com ...
I’ll wait wait til interests are -6.0%!! then go for a 0% refi on my mortage! *sets the oregano cigar aside*
It’s already well well below that.
Interesting and informative. Yeah, you must be a teacher at heart.
Problem: Previous interest rate cuts to 1 pct caused the Housing bubble that is now popping.
Solution: More hair of the dog that bit the economy.
And unimaginable reckless, irresponsible and Socialistic spending bailouts, for our kids to pay for, from a “conservative Republican” Administration no less. Geez, what if it was a “liberal Dem Admin”? What would they do? Nationalize the children as well as the banks, etc?
I’m so angry with the Bush Admin I could spit nails. Robbing the responsible poor middle class to bail out the irresponsible rich.
Right. Why would I want to buy a T.bill paying me nothing? Better to sit in cash and wait for good buys in commodities.
Well, Zimbabwee has hyperinflation created by reckless and massive printing of paper Zimbabwee dollars (sound familiar?). So in flight out of the hyperinflating Zimbabwee dollar, people buy stocks which have been soaring along with commodities as people want to spend their Z.dollars asap due to their hyperfast devaluating.
Who would have thought the “conservative Republican” Administration would have so turned its back on allowing the free market to cleanse the system with a short, ugly recession? Instead, like a drunk with a bad hangover, the solution from our Govt is to borrow money to buy more booze for the drunk.
What a smart solution!
For later.
LOL. I hear that!
Just a note to let everyone who’s thinking of refinancing know,the Treasury is working on a plan to lower refi rates to 4.5%.Since the other plan was for new home buyers only,this one is for refi’s.So,even though rates may go up,just wait until the Treasury plan becomes effective.
I would say late December to early January.....but it’s a guess.
A gentle reminder to you that money isn’t everything. From what you describe, you really don’t need to work. Spend the time with your kids.
I appreciate that. Luckily if I’m not with my kids my husband is, so they are still getting parental care. I just didn’t see the need for *both* of us to be sitting at home!
When my husband gets a new job, I’ll reduce my hours back again. And I have Thursdays completely at home still. I’m just worried it might take a long time for him to do so—good thing he doesn’t Freep much; it looks like the economic end of the world around here.
Yes, though decidedly not a pro. I have, between me and the Mrs., over 2,000 names on my tree (mostly going back to the mid-1800's - they didn't have birth control pills back then). I even found my wife that way - we were introduced by a distant cousin of mine, who shares mutual first cousins with my wife. Don't worry, kids have 2 eyes. :>)
No, vampires aren’t affected by silver bullets, only by light and stakes through the heart. You need some kind of bullet that contains the essence of light, as in “Underworld.”
That, of course, doesn’t mean that they’re not useful against werewolves. Too bad that I don’t cast bullets, it’d be fun to do as a joke, then show people my live rounds with silver bullets. It’d make the TSA guys go bananas.
It’s a great hobby...bordering on being a passion. The wife has over a thousand names...many going back to early New England. As for me, Irish on both sides. Nothing quite like visiting a village where a great grandfather lived and toiled.
Enjoy your 1745 economy.
Hit 4.5% earlier today :)
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