Fed poised to cut rates again

[onehandle]

Source: AP

WASHINGTON - The Federal Reserve is expected to aggressively lower interest rates in its intensified battle against the credit crisis and spreading economic weakness. The question is whether all of the effort will turn the tide.

Federal Reserve Chairman Ben Bernanke and his colleagues have already been working overtime, employing a variety of novel approaches to keep the economy out of a recession or at least moderate the impact of any downturn.

More relief is expected Tuesday when the central bank is expected to cut a key interest rate by between one-half and a full percentage point.

"There is no reason for the Fed not to be aggressive," said Mark Zandi, chief economist at Moody's Economy.com. "The economy is in a recession, the financial system is in disarray and inflation is low."

Read more: http://news.yahoo.com/s/ap/20080318/ap_on_bi_ge/fed_credit_crisis

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We are so screwed.

[GOPBasher]

1. Just inflate everything away, Fed.

While we're at it, let's just print the money to pay back Bush's debt, and drop the value of the dollar to the point that it's no longer worth the paper it's printed on. That'll be great!

[annabanana]

2. So that means that more people will borrow, right?

Not ME, of course, since this won't impact the rate on my credit card. And I have a house that is only half mine, so I don't want to leverage it again.

Do banks get to call the money that they've lent "assets"? That's a pretty damn big leap of faith isn't it?

Why does Wall Street get all verklempt when the prime rate is lowered?

[Alcibiades]

8. The Fed funds rate seems to have no impact

On the rate paid by consumers. I'm in the process of getting a mortgage (we'd like to buy a house now, before they stop lending altogether, and we'd also like to pay back a fixed-rate loan with dollars that are worth less tomorrow than they are today) and the rate drops by the fed have nothing whatsoever to do with the rate our bank is charging us.

[FATCATs]

3. Perhaps if they PAY YOU to borrow money

Ah, Never mind, They tried that under Ronnie Raygun didn't they ?

[distantearlywarning]

4. Inflation is low?

What planet is this guy living on?

:crazy:

[spinbaby]

6. You see, it's like this

They don't count food and energy in the inflation figures because they're too "volatile." They DO count housing costs. Voila! No inflation!

[tnlurker]

5. Wage inflation is low

Price inflation is skyrocketing.

[Javaman]

7. Place your bets!! How low will he go? I'm saying .75. what you say? nt

[cliss]

9. Thanks for the update.

The Fed ready to lower rates again?

Let's see, the current rate is....what?

So will they go down to 0% soon, and what happens then.