Wow, Fed cuts rates to nearly zero
Fed Cuts Key Interest Rate To Between Zero and 0.25%
Wow, In a more significant move than I and most others had expected it appears as though the Federal Reserve has decided to cut interest rates to "zero to 0.25 percent." When someone in my office told me this I couldn't comprehend it. I was like huh?
I guess this means that they cut by a little more than 75 basis points to the lowest level ever. I wonder why they are using such a strange rate, perhaps they believe that this is the lowest possible level that they could go to before the returns on money market would be negative. Otherwise why wouldn't they just go all the way.
Mr. Market certainly likes the move. The Fed certainly didn't sound very optimistic about the economy in its statement, "The committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time."