U.S. Dollar and the Fed

218579 Resource 119244 120646 120646 1227190334124 1227191070169 Controlled JP Morgan Predicts that the Fed Rate Will Go to Zero

Will we see 0% for the Fed?

Will the <a title="deflation, 0% Fed, Fed rate, market, Bank of Japan, Swiss National Bank, rate cut, zero percent, 0%, free money" target="_blank" href="http://www.thisismoney.co.uk/news/article.html?in_article_id=457849&in_page_id=2&position=moretopstories">Fed really be offering free money </a>in the coming months? Some think so. JP Morgan is predicting that the Fed rate will be cut to 0% in the coming two months, slowly inching down in an effort to boost the U.S. economy. Right now, there is some worry that <a title="deflation, 0% Fed, Fed rate, market, Bank of Japan, Swiss National Bank, rate cut, zero percent, 0%, free money" target="_blank" href="http://www.yieldingwealth.com/ask-the-piggy-bank-what-is-deflation/">deflation</a> is about to set in, harming the U.S. economy, and inflation is likely to be used as a counter-strike. However, things may not work out perfectly for the Fed if this happens, reports <a title="deflation, 0% Fed, Fed rate, market, Bank of Japan, Swiss National Bank, rate cut, zero percent, 0%" target="_blank" href="http://www.bloomberg.com/apps/news?pid=20601083&sid=anPQsS_15Tl4&refer=currency">Bloomberg</a>: <div style="margin-left: 40px; font-family: verdana,arial,helvetica,sans-serif;">``Taking the target rate to zero percent would not be costless for the Fed,'' Feroli said. Public confidence may drop ``if there is a perception that the Fed has `run out of ammo.''' </div> Indeed, dropping the Fed rate to 0% might be taken as a sign of defeat. And besides, what can the Fed do beyond that? Sure, it's possible to go negative and start paying people to take money, but that's getting a little extreme (and the scenario is unlikely). At any rate, the Fed isn't the only country that's getting lower in terms of interest rate. The <a title="deflation, 0% Fed, Fed rate, market, Bank of Japan, Swiss National Bank, rate cut, zero percent, 0%, free money" target="_blank" href="item/218577">Swiss National Bank just cut its rate by 100 basis points</a>, and both the European Central Bank and the Bank of England are conceding that they may cut rates. And don't forget the Bank of Japan. It's practically at 0% already, with a rate of 0.3%. 9 application/xml false 0% 0% Fed Bank of Japan deflation Fed rate free money market rate cut Swiss National Bank zero percent U.S. Dollar and the Fed 0% Fed rate and the U.S. dollar http://www.gftforex.com/land/index.asp?aid=446 <script type="text/javascript" src="http://tipd.com/evbs.js"></script> <script type="text/javascript"> evb_url = 'http://forex.gftforex.com/public/item/218579'; evb_big(evb_url); </script> Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.4) Gecko/2008102920 Firefox/3.0.4 127.0.0.1 127.0.0.1 mmarquit 66.182.71.19 false true false false true 119244 blog blogsite/GFTForex/web