I don't know exactly what they mean by "between 0% to 0.25%" yet either. (edit: I heard that it's a range because 0% may not be possible due to implementation technicalities. But at this level, the effect is still the same, which is that the Fed has abandoned the interest rate, and plan to keep it at this level for some time.)
However, I do know that the market staged a rather substantial rally due to this news.
I think the Federal Reserve did the right thing considering the grim economic news such as the almost-equally impressive drop in the CPI for example. I especially applaud Bernanke for being so proactive and aggressive against any further deterioration in the market.
What will be really interesting to watch is whether Bernanke's other ideas, such as flooding the market with "unlimited liquidity" will really help ease the recession. I can't help but muse how lending was the root cause of our economic crisis to begin with, but of course, total seizure of lending is the problem not the excess of it.
But anyways, I have to get back to work....
Last edited by Broken Arrow : 12-16-2008 at 04:41 PM.
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