In Fed Rate Cut, Bad News for Savers we discussed how the Federal Reserve’s interest rate cuts affects all Americans, but what happens if they keep cutting interest rates all the way to 0% (a.k.a. zero interest rate bound)? Just since last September, Ben Bernanke and the Federal Reserve have cut the short-term interest rate [...]
Ben Bernanke, Chairman of the Federal Reserve, announces another interest rate cut . . . Wall Street rallies and Americans cheer. But how does a cut in interest rates really affect Americans anyway? For savers, who like guaranteed returns from high-yield savings accounts, money markets and CDs, the Federal interest rate cut is not particularly [...]
