...I'm okay with being REALITY-based.




Friday, June 13, 2003
      ( 1:48 PM )
 
How Low Can They Go?

To head off the deflation risk and boost
growth, the U.S. central bank is widely expected
to cut interest rates at its next meeting on
June 24-25.

-- from Reuters today. Just wondering: if the interest rate gets to 0, then what happens?

The Fed is keeping its eye on the possibility of deflation happening to the country (guess they didn't get the memo that it's already here). The producer price index and consumer confidence both went down in a report that came out today. But, thanks to Lambert guesting at Eschaton today, we know that despite working people still lacking confidence to spend extra money, the upper classes of our society are feeling much better these days.

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