The Fed's last bullet: A blog post on the New York Fed's website explains why a "zero lower bound" on interest rates exists even though - in theory - the Fed could actually drop rates below 0%. The problem with a move below 0% is that it has the potential to further disrupt markets because many current institutional arrangements were not designed with near-zero or negative interest rates in mind - leaving the FOMC stuck for all practical purposes with the lower bound.
The Fed's last bullet: A blog post on the New York Fed's website explains why a "zero lower...
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