From Realtor Magazine Online, Daily Real Estate News December 2, 2008
Federal Reserve Chair Ben Bernanke said lowering the key interest rate is “certainly feasible,” but probably won’t revive the sagging economy.
The Fed’s key interest rate is now set at 1 percent and many economists predict the Fed will lower it again when it meets on Dec. 15 and 16. But, obviously, the rate can’t go any lower than 0.
In a speech Monday to Austin, Texas, business leaders, Bernanke said there are other ways the Fed might bolster the economy. He cited buying longer-term Treasury or agency securities on the open market in substantial quantities, which would lower rates on these securities and “thus help to spur aggregate demand,” Bernanke said.
"We at the Federal Reserve and our colleagues at other federal agencies will carefully monitor the conditions of all key financial institutions and stand ready to act as needed to preserve their viability in this difficult financial environment," he said.
Source: Associated Press, Jeannine Aversa (12/01/08)
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