The Fed Goes the Distance with Rate Cuts
Abstract:
Yesterday, the U.S. Federal Reserve dropped its key benchmark interest rate, the federal funds rate, by a further 25 basis points (100 basis points = 1.00%). The keynote rate now stands at only 2.00% and is down 325 basis points from its peak level (5.25%) before the liquidity crisis raised its ugly head in August last year.The federal funds rate at its new level means that pretty much all of the interest rate stimulus that can be provided by the Fed has already been put in place
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Yesterday, the U.S. Federal Reserve dropped its key benchmark interest rate, the federal funds rate, by a further 25 basis points (100 basis points = 1.00%). The keynote rate now stands at only 2.00% and is down 325 basis points from its peak level (5.25%) before the liquidity crisis raised its ugly head in August last year.The federal funds rate at its new level means that pretty much all of the interest rate stimulus that can be provided by the Fed has already been put in place