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Economic News, Data and Analysis

Interest rates to zero?

As somone thinking about applying for a mortgage – I’d love to see this…

Fed Gov. Bernanke sees rates as low as zero if need be – Jul. 23, 2003
Federal Reserve Governor Ben Bernanke said on Wednesday that the central bank would be prepared to cut interest rates all the way to zero if necessary to prevent a fall in inflation.
Speaking to a university audience, Bernanke said if the Fed were to reduce overnight borrowing costs to zero, it would look at so-called nontraditional methods of trying to spur growth, such as buying long-term bonds.
He expressed confidence that those methods would work if the Fed needed to turn to them. But policymakers still appear focused on using their central tool of controlling short-term interest rates for now.

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Filed under: Economics

One Response - Comments are closed.

  1. Hasan's blog says:

    [ARGMAX]We’re becoming Japan

    Argmax speculates of a zero-interest rate mortgage. Instead of fending off inflation, which would occur if the economy becomes overheated and there is too much money chasing too few goods, the Federal Reserve ought to stop mucking with the economy. Aft…

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