11 Dec
Fed to cut rates again, maybe all the way to zero
More aggressive ‘nontraditional’ policy means also in store
The Federal Reserve is expected to cut rates again at the end of a two-day policy meeting next Tuesday and could be on the road to zero.
“Our view is that the Fed will continue pulling out all the stops” to fight the downturn, said Jonathan Basile, an economist at Credit Suisse Holdings Inc.
At the moment, the federal funds rate stands at 1%. Since October, the Fed has slashed target lending rates by 50%. That followed a series of earlier rate cuts that brought the funds rate down from 5.25% in September 2007.
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