Gold Prices Decline Moderately, Energy Falters Dec 25, 2008
1 percent last week, following the Fed's move to cut its benchmark fed funds rate to a range of zero to 0. 25 percent. (ABC News -- Wire)
Newsweek: A 4.5 percent mortgage for Christmas? Dec 25, 2008
The week before Christmas, the Federal Reserve dropped the federal funds rate to zero percent, a number usually associated with the cut-rate financing deals offered by. While movements in Fed-controlled short-term interest rates don't always affect long-term rates (which include mortgage rates), in this case they have. (MSNBC -- Business)
Answer Desk: The Feds zero interest and you Dec 25, 2008
The prime rate did indeed drop following the Feds announcement last week that it was letting the short-term federal funds rate fall to zero. But that fed funds rate applies only to banks lending money to each other overnight ... The prime rate originally reserved by banks for their best (or prime) business customers is typically about 3 percentage points higher than the Fed funds rate. (MSNBC -- Business)
Mortgage applications up 48 percent Dec 25, 2008
The Federal Reserve announced last week that it had cut its benchmark fed funds rate to nearly 0 percent, and that it would buy more mortgage-backed securities issued by Fannie Mae and Freddie Mac. Both moves were designed to jump-start the faltering U.S. economy. (San Jose Business Journal, CA)
Bernanke Is the Best Stimulus Right Now Dec 23, 2008
Once the federal-funds rate is reduced to zero, or near zero, doesn't this mean that monetary policy has gone as far as it can go. This widely held view was appealed to in the 1930s to rationalize the Fed's passive role as the U.S. economy slid into deep depression. (Wall Street Journal)
Gold falls as oil prices drop Dec 23, 2008
The Federal Funds rate was at 5. 25% in September 2007 when policy makers began cutting the benchmark rate as the economy headed into a recession. (Sydney Morning Herald -- Business)
Retail sales and prices fall again Dec 23, 2008
The Fed's target for the federal funds rate, the interest that banks charge each other, is already at 1 percent, tying the lowest level of the past 50 years. The 1. (ABC 7 News, DC)
Stocks fall in light trade Dec 23, 2008
News Story - Idaho State Journal. NEW YORK (AP) -- Wall Street began a holiday-shortened week with a moderate pullback Monday as investors recoiled at bleak news from Toyota Motor Corp. and drugstore operator Walgreen Co.. (Pocatello Idaho State Journal, ID)
Stocks slip as Toyota cuts profit outlook Dec 23, 2008
Besides relief over the auto bailout, investor sentiment has also grown a bit more upbeat in the past few trading sessions after the Federal Reserve cut the benchmark federal funds rate to a range of zero to 0. 25 percent. (Casper Star-Tribune, WY)
Australian Funding Costs at 3-Week Low as China Joins Central Bank Actions Dec 23, 2008
Weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time, the Federal Open Market Committee said in a statement last week. Should Ease. (Bloomberg -- Australia & New Zealand)
Fiscal stimulus key for economy Dec 22, 2008
25 percentage-point differential with the U.S. funds rate, rupiah financial assets are still attractive for depositors and investors. But given all the volatility and the uncertainty in the international financial market and the risk of the crisis taking a sudden turn for the worse, the rupiah could be severely hit as people may lose confidence in it. (Jakarta Post, Indonesia -- Business)
Calbreath: Home loans, health care top holiday wish list Dec 22, 2008
But these days, with the Federal Reserve's benchmark federal funds rate flat-lining around zero, a mortgage rate of 4 percent is not necessarily a fantasy. Last week, some lenders slashed the rates on their 30-year mortgages to as low as 4. (San Diego Union-Tribune)
Hope for year-end rally on Wall Street Dec 22, 2008
Besides the auto bailout, sentiment has also grown a bit more cheery in the past few trading sessions after the Federal Reserve cut the benchmark fed funds rate to as low as zero. Investors are looking for any signs that the government is being proactive about reviving the battered U.S. economy to avoid a protracted recession. (MSNBC -- Business)
Mortgage Rates Plunge to Record Lows Dec 22, 2008
REALTOR Magazine Online: The real estate professional's business support tool. YOUR INTERACTIVE MAGAZINE REALTOR.ORG/realtormag. (Realtor Magazine Online)
Interbank lending rates continue to fall modestly Dec 22, 2008
The fall came after the Fed cut its federal funds rate from 1. 0 percent to a range between 0. (International Herald Tribune -- Travel)
Stocks hope Santa can brighten dark year Dec 22, 2008
Analysts said sentiment over the outlook for the battered US economy had shifted to a more positive tone as investors were cheered by the Feds move last week to cut the benchmark fed funds rate to as low as zero and its pledge for further measures to shore up credit markets. Optimism over President-elect Barack Obamas proposed stimulus plan has added to the more positive tone, helping the market rally in the face of an onslaught of dire economic and corporate outlooks. (The Star Online, Malaysia -- Business)
Buy Realty Stocks On Monday, Says Vishwas Agarwal Dec 21, 2008
It cut its target for the interbank federal funds rate to a range of zero to 0. 25%, a record low from 1% earlier. (TopNews)
Fed pulls out all the stops in war on deflation Dec 21, 2008
The effective funds rate has been below the target for two months, in part because government-backed mortgage lenders Fannie Mae and Freddie Mac cannot earn interest on the reserves they hold in excess of what is required by the Fed ... Specifically the Fed pledged to "employ all available tools" to rekindle economic growth and ward off deflation; to sustain its already bloated balance sheet "at a high level"; to purchase "large quantities of agency debt and mortgage-backed securities" to... (Business Report, South Africa)
Asian Currencies Post Weekly Gains as Stock Rally Draws Overseas Investors Dec 20, 2008
advanced this week after the Federal Reserve on Dec. 16 cut its federal funds rate to between zero and 0. 25 percent and said it will use all available tools to combat a recession in the worlds biggest economy. (Bloomberg -- Asia)
Zero Rates Could Save You Money Dec 20, 2008
The Tuesday decision to cut the federal funds rate from 1 percent to a target range between zero and 0. 25 percent, brought mortgage rates to record lows -- levels not seen in almost 50 years. (ABC News -- Business)
Record Low Mortgage Rates Toss Housing a Lifeline Dec 20, 2008
The decline was also the result of the Federal Reserve cutting its benchmark federal funds rate target to a record low this week. "Being baby boomers, we're looking down the road at retirement, and are making every effort to be as debt free as possible," Hennessy said. (ABC News -- Wire)
Treasurys Pull Back After This Week's Big Rally Dec 20, 2008
Earlier this week, the Federal Reserve slashed its federal funds rate target to a range of zero to 0. 25 percent, and said it was considering buying Treasurys outright in addition to mortgage-backed securities. (ABC News -- Wire)
Our View: Fed rate cut smells like desperation Dec 20, 2008
The announcement by the Federal Reserve Board last week that it has cut its benchmark overnight federal funds rate, the rate at which banks lend to one another, to a "target range" of between one-quarter percent and zero is both an acknowledgment of reality and a sign of panic. Since banks, even in the wake of huge infusions of capital from both the Treasury and the Fed, aren't lending much to each other, anyway, the effective interest rate was already close to zero. (Appeal Democrat, CA)
The Bond Market Dec 20, 2008
25% compared to general market expectation for a 50-bps cut, and for the first time in the modern era, the Fed is now targeting a range for the Fed funds rate of 0-0 ... The Feds aggressive reduction in its Fed funds rate to a record low range of 0-0. (The Star Online, Malaysia -- Business)
Local funds may push for a minor relief rally and rebound in the coming weeks Dec 20, 2008
On Tuesday, the Federal Reserve announced it was assaulting the recession with more potent ammunition than ever, including a cut in the federal funds rate to a historic low of zero to 0. 25. (The Star Online, Malaysia -- Business)
Trade and the world economy: Fare well, free trade Dec 19, 2008
Rich countries collectively face the severest recession since the second world war: this week s cut in the target for the federal funds rate to between zero and 0. 25% (see ) shows how fearful America s policymakers are. (The Economist)
The Federal Reserve: The Fed fixes bayonets Dec 19, 2008
After a two-day meeting the Fed s policy panel, the Federal Open Market Committee (FOMC), announced three big measures: it has cut its target for the federal-funds rate to between zero and 0 ... Although the cut in the target for the federal-funds rate was larger than expected, it will have no measurable impact on the actual funds rate, which is charged on excess reserves lent overnight between banks ... (The FOMC s move to a range rather than point target for the funds rate reflects the... (The Economist)
No end to financial disorder Dec 19, 2008
If the way out of the stagflation of the 1970s required the federal funds rate to climb to 19%, would setting this rate at zero promise recovery and financial stability. That is a real dilemma. (Asia Times Online)
Dow ends lower on scandal, bailout fears Dec 19, 2008
The question, he said, is how the Fed "will position itself" after what essentially "is a zero funds rate. It might as well be at zero" if the Fed cuts the rate to half a percent ... The federal funds rate is the interest rate that banks charge one another for overnight loans. (Insight on the News)
Dow down nearly 100 points in late sell-off Dec 19, 2008
The federal funds rate influences the prime rate, which in turn has a bearing on how much interest is charged for mortgages, credit cards and loans to students and to people who want to buy automobiles. The lower the rates, the more people will spend, the thinking goes. (Insight on the News)
Helicopter Ben Goes ZIRP! Dec 19, 2008
The Fed decision to cut the target for the Fed Funds rate to the 0% to 0 ... So the Fed just formalized what had already been happening for weeks now, i.e., that the Fed Funds rate was already zero and that the Fed had already moved to quantitative and qualitative easing (QE) in the form of a massive increase in the monetary base and aggressive use of monetary policy to reduce short-term and long-term market rates that are stubbornly high in a sign that the credit crunch is severe and worsening... (Forbes)
Dollar hits nearly 3-month low vs euro, yen tumbles Dec 19, 2008
The Fed on Tuesday cut its federal funds rate target to virtually zero. That contrasted with the more cautious approach of the European Central Bank, which recently hinted that it may not cut again in January. (India Times)
ranscript of Regular Press Briefing by Caroline Atkinson, Director, External Relations Department Dec 19, 2008
And I'll draw your attention, as they did in their statement, not just to the lowering of the Fed funds rate or the formal lowering to zero to 0. 25 percent but also their decisions to take other measures to support credit markets and the economy and their statement that they expected for the low rate to continue for some time, and that they would use all available tools. (IMF News)
Mortgage rate drop drives refinancing; home sales may wait Dec 18, 2008
The Fed, aiming to free up lending and jolt the economy back to life, cut the federal funds rate Tuesday from 1 percent to a target range of zero to 0. 25 percent and pledged to keep funneling money into the market for mortgage investments. (Boston Globe)
No break seen on credit cards Dec 18, 2008
"The prime rate drop is probably a small dose of good news for cardholders," Ben Woolsey, director of marketing and consumer research at , said yesterday after the Fed slashed the federal funds rate to historic lows ... The lowering of the prime interest rate - which typically moves in tandem with cuts by the Fed in the federal funds rate - should soon trigger lower rates for home and car loans. (Boston Globe)
Ben's big ZIRP! moment Dec 18, 2008
Bernanke had probably not wanted to lower rates to 1%, as he was forced to do in late October, for that was the Federal Funds rate that Greenspan established from mid-2003 to mid-2004, and is now considered to be a key factor in the real estate and debt bubble's final, crazy years of expansion. But after hitting 1% in October, the ongoing and rapidly intensifying weakness in the US, and now the global economy, has finally pushed the Fed to ZIRP, the lowest rates ever, the lowest rates that could... (Asia Times Online)
* Federal Reserve cuts rates, pledges stronger action Dec 18, 2008
The Fed announced that it was reducing its target for the federal funds rate to between zero and 0. 25 percent, down from 1 percent, a level that was already the lowest target rate in a half century. (Taipei Times, Taiwan)
Feds rate cut wont help most credit card users Dec 18, 2008
com, said Wednesday after the Fed slashed the federal-funds rate to historic lows ... The lowering of the prime interest rate which typically moves in tandem with cuts by the Fed in the federal funds rate should soon trigger lower rates for home and car loans. (MSNBC -- Business)
Dollar holds above 70 US cents Dec 18, 2008
The US Federal Open Market Committee (FOMC) lowered the federal funds rate from 1% to what was described as a "target range'' of between zero and 0.25%. "It is a weak US dollar story,'' he said. Mr Morriss said the Australian dollar gained some momentum, breaking through 70. (Sydney Morning Herald -- Business)
US stocks drop in choppy trade Dec 18, 2008
On Tuesday, the Fed slashed its key federal funds rate to virtually zero for the first time and pledged extraordinary efforts to get credit flowing and stimulate the world's biggest economy, stuck in recession for the past year. Oil prices sank after a large increase in US reserves heightened global demand worries and eclipsed OPEC's announcement of a record production cut. (Sydney Morning Herald -- Business)
The Fed's Historic Move Dec 18, 2008
In addition to reducing the target Fed Funds rate from 1% to a range between 0% and 0 ... In fact, the current decision is similar to the earlier one in that it leaves the Fed Funds rate more to the market, in order to hone in on other areas. (Forbes)
* US dollar at 13-year low against yen Dec 18, 2008
The Federal Open Market Committee in a statement said it expected to keep the federal funds rate exceptionally low for some time because of markedly declining inflationary pressures. With Japan in recession, the government made little secret that it would like the countrys own central bank to cut rates at its two-day meeting opening today. (Taipei Times, Taiwan -- World)
* NT dollar strengthens to six-week high Dec 18, 2008
The US central bank, going further than expected, cut its target for the overnight federal funds rate to a range of zero to 0. 25 percent on Tuesday, ushering in an era of the zero-rate policies that Japan adopted for years in its fight against deflation. (Taipei Times, Taiwan -- World)
New Rules To Ease Credit Card Burdens Dec 18, 2008
com, said Wednesday after the Fed slashed the federal-funds rate to historic lows ... The lowering of the prime interest rate - which typically moves in tandem with cuts by the Fed in the federal funds rate - should soon trigger lower rates for home and car loans. (CBS News -- US)
Rate Cut May Be Boost For Home, Car Buyers Dec 18, 2008
The Fed on Tuesday announced that it was reducing its target for the federal funds rate to between zero and 0 ... The Dow Jones industrial average had gained more than 4 percent Tuesday after the central bank lowered its federal funds rate target to a range of zero to 0. (KCRA 3, CA)
Signs point to a lighter mood among financial players Dec 18, 2008
(And this was before the U.S. Federal Reserve's stunning cut to a near-zero federal funds rate this week. . (Globe and Mail -- Business)
Shock-and-Awe Easing Dec 18, 2008
For starters, Bernanke stablished a new target range for the federal funds rate of zero-to-one-quarter percent ... The Fed also signaled the near-zero funds rate could last for some time. (Townhall.com)
Key Interest Rate as low as it can go Dec 18, 2008
REALTOR Magazine Online: The real estate professional's business support tool. YOUR INTERACTIVE MAGAZINE REALTOR.ORG/realtormag. (Realtor Magazine Online)
Fed Targeting Zero Isn't the Same as Doing Zip Dec 18, 2008
Specifically the Fed pledged to employ all available tools to rekindle economic growth and ward off deflation; to sustain its already bloated at a high level; to purchase large quantities of agency debt and mortgage-backed securities to support the housing and mortgage markets; and to maintain exceptionally low levels of the federal funds rate for some time ... Banks can now borrow at an interest rate of virtually zero, secure in the knowledge that the Fed isnt going to... (Bloomberg -- Columnists)
Wall Street flat a day after rate cut Dec 18, 2008
Economists had expected the Fed to cut the federal funds rate to 0 ... But the fed funds rate has now fallen below the Bank of Japan's overnight rate the first time that has happened since January 1993. (International Herald Tribune -- Money Report)
Dow retreats, First Solar leads AZ gains Dec 18, 2008
25 percent for its federal funds rate. Major economic news Wednesday included another dip in U.S. oil prices to about $40 a barrel, down from a record of more than $140 earlier this year. (Phoenix Business Journal, AZ)
Wall Street dips after previous big rally Dec 18, 2008
The Dow Jones industrial average rose more than four percent on Tuesday and other indexes gained more than five percent, as the Federal Reserve cut its federal funds rate target to a range of zero to 0. 25 percent. (Xinhuanet, China)
Dollar Dives As Fed Spurs Treasury Buys, But Not Demand For U.S. Corporate Debt Dec 18, 2008
The Fed's bold move Tuesday, cutting the fed funds rate to 0%-0. 25% range and proposing to buy longer-term Treasuries, just capped a long decline in those returns. (Investors Business Daily)
Why a Zero Percent Interest Rate Probably Won\'t Work Dec 18, 2008
The federal funds rate is the amount of interest banks charge each other for overnight lending ... If the federal funds rate is low, the cost to banks of lending to one another, and therefore to players in the larger economy, is reduced ... Strictly speaking, the Fed doesnt control the federal funds rate; it can only influence it. (Slate)
Markets slightly higher in early trade Dec 18, 2008
HwangDBS Vickers Research said after the initial reaction from the deeper-than-expected cut in the federal funds rate by the US Federal Open Market Committee two days ago, investors focus would probably shift back to whether the slew of initiatives already taken so far (and what additional tools more that are available to the policymakers) would be adequate to reverse the falling fortunes of the global economy ahead. At home, the benchmark KLCI is expected to zigzag sideways around the 860-mark... (The Star Online, Malaysia -- Business)
Honda cuts annual profit forecast on lower demand Dec 18, 2008
Japanese carmakers are being punished especially hard by a robust yen, which is approaching 88 yen to the dollar after the US Federal Reserve took the historic move of cutting its federal funds rate target to a range of zero to 0. 25. (The Star Online, Malaysia -- Business)
More Americans hurt by downturn Dec 17, 2008
The Federal Reserve yesterday cut its target for the federal funds rate to a range of zero to 0. 25 percent, the lowest on record. (Huntington WSAZ-TV, WV)
Latest cut takes key rate as low as it goes Dec 17, 2008
The Fed yesterday cut its federal funds rate, which banks charge each other for overnight loans, from 1 percent to a range between zero and 0. 25 percent, the lowest on record. (Boston Globe)
A global trade decline? Dec 17, 2008
The US Federal Reserve moved Tuesday to lower the federal funds rate, the short-term lending rate for banks, to a target range of 0 to 1/4 percent. Citing a weak job market, the Fed said conditions "warrant exceptionally low levels of the federal funds rate for some time," as well as other measures designed to restore normal growth. (Christian Science Monitor -- USA)
Paulson: Banks Safe From Further Collapse Dec 17, 2008
Federal Reserve Chairman Ben Bernanke and his colleagues said they anticipate that "weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time" as they struggle to contain a financial crisis that is the worst since the 1930s and a recession that is already the longest in a quarter-century. The central bank is moving into uncharted territory with this newest rate cut. (KSBW 8, CA)
The Fed fixes bayonets Dec 17, 2008
Following a two-day meeting the Fed s policy panel, the Federal Open Market Committee (FOMC), announced three big measures: it has cut its target for the federal-funds rate to between zero and 0 ... Although the cut in the target for the federal-funds rate was larger than expected, it will have no measurable impact on the actual funds rate, which is charged on excess reserves lent overnight between banks ... (The FOMC s move to a range rather than point target for the funds rate reflects the... (The Economist)
Recent Fed Rate Cuts Impact Prime R... Dec 17, 2008
Recent Fed Rate Cuts Impact Prime Rate: Federal Reserve Announcement - Reduced Target Federal Funds Rate ... Federal Reserve Announcement - Reduced Target Federal Funds Rate ... Definitions of federal funds rate rate. (Suite101.com)
US inflation falls still further Dec 17, 2008
Later on Tuesday the Federal Reserve is widely expected to cut its key federal funds rate, already at a low of 1%, by another half percentage point in an effort to keep the recession from worsening. Bookmark with. (BBC News -- Americas)
What zero percentage rates mean Dec 17, 2008
No. Pushing the federal funds rate down to zero doesnt mean everything comes with zero-percent financing. It means banks can now raise cash for very short periods without paying interest. (MSNBC -- Race)
Consumer Prices Drop Record 1.7 Percent Dec 17, 2008
Economists expect the central bank to cut the federal funds rate, already at a low of 1 percent, by another half-point in an effort to keep the recession from worsening. Consumer prices, an inflation barometer, last month fell by the largest amount on records going back 61 years as energy costs posted nearly double the decline of the previous month, the Labor Department reported Tuesday. (ABC News -- Business)
