Radical US Federal Reserve action expected with rate cut

  •   The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Infowars.com Twitter Alex Jones' Facebook Infowars store

Gary Duncan
Times Online
December 15, 2008

The US Federal Reserve is tipped tomorrow to pave the way for it to take more extraordinary measures to kick-start the American economy after it cuts interest rates to an historic low of only 0.5 per cent. The Fed is expected to cut the key US official interest rate, its Fed Funds target rate, by another half-point from the present 1 per cent level that matches past record lows.

  • A d v e r t i s e m e n t
  • efoods

But with still lower official rates seen as unlikely to deliver much of an extra boost to stalled US growth, markets are on alert for the Fed to map out action through radical measures to pump funds into the economy.

Another cut in the official rate is seen as likely to prove mainly symbolic. This is because this official rate is in reality only a target for the cost to US banks of borrowing from each other overnight, through the Fed. In practice, distortions in the marketplace have already pushed the true rate at which the US banks can borrow overnight well below the Fed target, to levels approaching zero.

With serious practical dangers to the US economy likely to be posed by cutting rates much below 0.5 per cent, the Fed is likely to use its statement to set out alternative, aggressive action that it can take in place of conventional cuts in interest rates.

Read article

This article was posted: Monday, December 15, 2008 at 1:09 pm

Infowars.com Videos:

Comment on this article

Comments are closed.

Watch the News

The Mass Marketing Campaign For World War III See the rest on the Alex Jones YouTube channel.

Communist Manifesto: A Graduated Income Tax See the rest on the Alex Jones YouTube channel.

© 2013 Infowars.com is a Free Speech Systems, LLC company. All rights reserved. Digital Millennium Copyright Act Notice.