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Fed Sees Slower Growth

Tuesday, July 13, 2010 - 8:28 PM
From the Wall Street Journal
Federal Reserve officials, who are likely to reveal Wednesday a cut in their assessment of the growth outlook, are divided on how aggressively the central bank should act if the economy slows further.

They're talking about how they can spur growth, and unfortunately, there is some talk about forcing rates even lower than they are today:
By eliminating the 0.25% interest that the Fed pays banks to leave money on deposit with the central bank, the Fed could push the fed funds rate all of the way to zero. That, however, could disrupt the money market industry by eliminating revenues on funds the industry manages, which gives some Fed officials pause.

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Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
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