ben bernanke

The federal reserve has officially lowered the effective interest rate to a rock-bottom low of between zero and 0.25%, citing the crumbling economy and lessening threat of inflation as justification.

The amount comes as a bit of a surprise, as most people didn't expect the rate to go any lower than 0.5%. No end in sight, either. Looks like rates are going to stay near the floor indefinately.

In response, of course, many banks are also dropping their prime rates.

I know many on Wall Street are thrilled with the decision, but I'm wondering if others are concerned that bringing the rate so low leaves little wiggle room should the need arise to lower it again. Thoughts?

Did today’s speech by the Fed Chairman fall on deaf ears, or is it just too little too late? Although he didn’t come right out with it, he hinted heavily at a possible rate cut, mentioning the ever dwindling consumer spending (well, what the hell, who has money to shop these days…we don’t even know if we’ll have jobs tomorrow for Christ’s sake) as well as the fact that “that the outlook for economic growth has worsened and that the downside risks to growth have increased” (duh) We all know the bleak outlook of the market when it closed today, so was the subtle undertone of the rate cut disregarded, or is there such pandamonium at this point that nobody notices or cares?