Fed sets target range for funds rate of 0 to 0.25%

WASHINGTON (MarketWatch) — The Federal Reserve cut the federal funds rate by
three quarters of one percent to 0.25% but added that it will let the rate float
down to zero. By setting the new target range, the Fed signaled it has exhausted
the funds rate as a tool for monetary policy. The target range will also be
useful because the funds rate would likely have traded below any target at such a
low level. Economists stressed the central bank still has ammunition to counter
the recession by “using the power of the printing press” to add money to its
balance sheet.

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• How many down months before we admit we are in a depression?
• One wrong move, and the entire thing could come crashing down.
• Federal Reserve’s powers are too broad and it’s policies have caused more problems than solutions.
• Here’s a promising article: “Fed moves to drain some money out of economy” (posted on yahoo at 4:01 pm today)

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