The Federal Reserve now appears to believe that it still has more room to cut short-term interest rates--that the old argument that it would be unhealthy to cut the Federal Funds rate below 1% per year does not really apply:
Posted by DeLong at July 23, 2003 07:26 PM | TrackBackBlog - ArgMax.com: 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.
When Bernanke talks, gold jumps. I wish he would shut up.
Posted by: Fred Boness on July 24, 2003 01:11 PMIf you're interested in the ramifications of the coming 'New World Order', see the excellent NWO site at http://www.nwointelligence.com.
You'll also find a superb archive of articles on the New World Order [which is impacting and changing us all increasingly] and the Federal Reserve fiat money system, from the 'New World Order Intelligence Update', at http://www.rarehistorybooks.com/NWOCONSP.HTM. They are also mirrored at http://www.survivalistskills.com/NWODICT.HTM and at http://www.torontochristianbooks.com/NWOGOV.HTM. Well worth reading!