ST Alpha - "JP Morgan predicts the Fed will cut its short term rate to zero by early 2009 " (Reading a Post)

SlickerTalk
Search Archives
The Leaderboard
The FAQ

Down to Post

Backboards:

Posts: 159

JP Morgan predicts the Fed will cut its short term rate to zero by early 2009

Posted by Brian (aka trav007) Nov 20 '08, 06:43

Liquidity trap, here we come!

Fed to Cut Rates to Zero on Deflation Risk, JPMorgan Predicts

By Jason Clenfield
Enlarge Image/Details

Nov. 20 (Bloomberg) -- The U.S. Federal Reserve will probably cut interest rates to zero percent over the next two months to staunch deflation, according to JPMorgan Chase & Co.

The Fed will lower borrowing costs by 50 basis points at each of the next two policy meetings on Dec. 16 and Jan. 28, JPMorgan economist Michael Feroli wrote in a note to investors yesterday. The central bank will hold rates at zero for the rest of 2009 to prevent prices from spiraling down as companies cut jobs and banks reduce lending, stifling spending, Feroli said.

The US looks more and more like Japan circa 1990 every day (www.bloomberg.com)

Responses:

Crap, and I have 583M in free cash in my port... I'd better get a move on. -- nm - Jelly Nov 20, 06:46
it's totally meaningless. it won't do anything....nm - x Nov 20, 06:44 2
- The Fed is pushing on a string - Brian Nov 20, 06:46 1
  - exactly. another bunch of basis points won't do a damn thing. thanks alan greenspan....nm - x Nov 20, 06:55

Post a message top

JP Morgan predicts the Fed will cut its short term rate to zero by early 2009

Replies are disabled on threads older than 7 days.