jepittman

The Debate About Zero

It never ceases to amaze me how quick people are to use buzz words such as 'uncharted waters', 'perfect storm', etc.,etc., There is a precedent for these actions by the Federal Reserve. During World War ll the Fed brought short term rates to nearly zero and engaged in 'quantitative easing' by bidding treasury bonds to a target yield. This is largly how the war was financed. We turned out just fine by the way.