FOMC Enters Realm of 0% Interest Rates
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The FOMC voted, and the Fed Funds Rate has now been given a TARGET RANGE of 0% to 0.25%.
The Discount Rate was cut 0.75% and is now at 0.50%.
Some of the statements are as follows:
- Sees rate at exceptionally low levels for some time;
- Labor markets have deteriorated;
- Inflationary pressures diminished appreciably;
- Inflation to moderate in coming quarters;
- Will purchase large quantities of Treasuries;
- Vote: was 10-0 for FED FUNDS rate action;
- Outlook for economic activity has weakened further;
A link to the text of the FOMC statement is here.
The dollar just tanked on this news against foreign currencies.
The 10-Year is now yielding 2.43% and the 30-year Treasury yield came in to a low yield of 2.88% right after the news.
Jon C. Ogg
December 16, 2008
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
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McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
