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Fed study puts ideal interest rate at -5% By Krishna Guha in Washington Published: April 27 2009 03:00 | Last updated: April 27 2009 03:00 The ideal interest rate for the US economy in current conditions would be minus 5 per cent, according to internal analysis prepared for the Federal Reserve's last policy meeting. The analysis was based on a so-called Taylor-rule approach that estimates an appropriate interest rate based on unemployment and inflation. A central bank cannot cut interest rates below zero. However, the staff research suggests the Fed should maintain unconventional policies that provide stimulus roughly equivalent to...

No end yet in sight for recession GDP expected to be revised lower to show biggest loss since 1982 By Rex Nutting, MarketWatch Last update: 10:41 a.m. EST Feb. 22, 2009 Comments: 1472 WASHINGTON (MarketWatch) -- The U.S. economy is still getting worse, even as Washington's policy makers scramble to find the formula that will revitalize credit markets and consumer spending. The economy will probably provide some more bad news over the coming week, with little prospect that the Federal Reserve chairman or the Treasury secretary will do much to bolster spirits. The news from the flow of economic data...