Blog
Another Fed Rate Cut - Close to the Floor?
29th October 2008
The United States Fed has cut official policy interest rates for the second time in three weeks - this time by 0.5%.
This takes rates to 1% - the lowest they have been since 2004 and a recognition that the dangers of recession and deflation are in the ascendancy rather than inflation. At 1 per cent, the Fed has not left itself much room to cuts rates further if the macro-economy deteriorates. One option is for them to signal that they will keep rates on hold at low levels for the near future in a bid to unfreeze some of the credit markets and improve the flow of borrowed money available to hard-pressed businesses and homeowners. My 10 chart PowerPoint presentation provides an up-to-date chartroom view of macro developments in the US economy including
US official interest rates Payroll employment Sales of motor vehicles in the USA Consumer confidence by age GDP growth and interest rates Household debt service costs CPI inflation and nominal interest rates New home sales Non-farm employment Housing starts
PowerPoint: USA Macroeconomic Chartroom (29-10-08) The_Cut_in_US_Interest_Rates.ppt
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.