US fed is thinking of reducing the fed rate to zero tomorrow. With the present fed rate at 1.o% a 50bps reduction would mean that the rate would as low as .50% the least since july 1954.
This with some unconventional means to pump much needed liquidity into the market is expected by the fed.
But the question remains will this change the tide? will zero interest rate of the fed funds bring America and rest of the world out of the recession? According to me the recession is more than the liquidity crisis.
The Madoff scam, the bailout rejection to the auto majors will bring the impact of the rate cut down.
The investor confidence is critically low, the recovery looks to be way far for now.
Hope is what remains, hope for the best crossing our fingers.
This with some unconventional means to pump much needed liquidity into the market is expected by the fed.
But the question remains will this change the tide? will zero interest rate of the fed funds bring America and rest of the world out of the recession? According to me the recession is more than the liquidity crisis.
The Madoff scam, the bailout rejection to the auto majors will bring the impact of the rate cut down.
The investor confidence is critically low, the recovery looks to be way far for now.
Hope is what remains, hope for the best crossing our fingers.
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