The Federal Reserve cut its target for the federal funds rate, which is what banks charge each other for overnight loans. This key short-term interest rate is now at a record low range of zero to 0.25%, from the previous 1%.
Ian Shepherdson, chief U.S. economist for High Frequency Economics said: "So here we are: Rock bottom. The Fed move is a reflection of an utterly desolate economic picture, which will persist for the foreseeable future as the wrenching adjustment in household finances continues."
The ultimate cost of the Fed rate cuts and bailout programs may be huge inflation a few years down the road. San Diego MLS
