Ben Bernanke (R), incumbent Chairman of the Board of Governors of the United States Federal Reserve, arrives for the inauguration ceremony in Washington January 20, 2009. REUTERS/Jim Young (UNITED STATES)
Posted on 01/28/2009 12:14:04 PM PST by NormsRevenge
WASHINGTON – The Federal Reserve, acknowledging the economy has continued to deteriorate, signaled Wednesday that it will keep using unconventional tools to cushion the fallout, including keeping a key interest rate at a record low for quite "some time."
Specifically, the Fed said it is "prepared" to buy longer-term Treasury securities if the circumstances warrant such action. At its December meeting, the Fed said it was merely evaluating that option.
The Fed agreed — with one dissent — to keep the targeted range for the federal funds rate between zero and 0.25 percent. The funds rate is the interest banks charge each other on overnight loans.
(Excerpt) Read more at news.yahoo.com ...
Ben Bernanke (R), incumbent Chairman of the Board of Governors of the United States Federal Reserve, arrives for the inauguration ceremony in Washington January 20, 2009. REUTERS/Jim Young (UNITED STATES)
Does a plunger qualify as a tool?
Only two tools needed. A big syringe and a big bag of 99% pure political heroin.
One fix and it’s instant socialist addiction.
Should us working slobs be concerned with this statement?
Just askin’ as I don’t fully understand the lingo.
“... it will keep using unconventional tools to cushion the fallout...”
That sounds like a return to the Clinton plan of financing the government primarily with short-term securities.
The result is lower interest paid by the government, but it's akin to financing your house with introductory rate credit cards. It's very risky, because the market could drive short term rates back up.
Only the gov can help us.../s
Fed To Use Every Incorrect Tool in the Shed, Stunned Masses Glaze Over
That’s code for: we’re taking what’s left of the 401K money next ;-)
They can’t be overdrawn, they’ve still got some checks left.
So, they’re writing themselves a check to “cover” the balance.
ML/NJ
Forget the short term rates and let’s talk about the fact that it’s monetizing the debt which will mean MASSIVE INFLATION, a run on the Dollar by our current treasury holders, and a collapsing, inescapably oppressive wage system that our government will control.
Nothing to see here, move along.
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