Mungkin gak sih dalam keadaan ekstrim suku bunga jadi NEGATIF?

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-----Original Message-----
From: Vic <victor_speran...@yahoo.com>
Sent: Monday, December 15, 2008 06:00 PM
To: obrolan-bandar@yahoogroups.com
Subject: [obrolan-bandar] Federal Reserve may cut interest rates to 0% soon

WASHINGTON — The Federal Reserve is expected to slash a key interest
rate to near zero and signal that it will step up its use of other,
less conventional methods to bolster the economy, during a historic
two-day meeting starting Monday.

Economists expect the Fed's policymaking Open Market Committee to cut
its short-term interest rate target, now at a scant 1%, to a record
low of at least 0.5%, or further. The federal funds rate, which banks
charge each other for overnight loans, is a benchmark for business and
consumer loans.

If the Fed doesn't push its interest rate target to zero on Tuesday,
many economists expect it to do so at its January meeting. Then the
Fed will have to experiment with other strategies for pumping money
into the economy to spur business activity.

Fed Chairman Ben Bernanke has said options include buying Treasury
bonds to push down longer-term interest rates, or stepping up
financial support for private consumer and business lenders. For
example, mortgage rates fell earlier this month after the Fed said it
would buy $500 billion in Fannie Mae and Freddie Mac mortgage bonds.

Richard DeKaser, chief economist of National City, predicts the Fed
will cut the target by 0.75 points, to 0.25%, and may announce that it
will hold rates low as long as needed in order to influence expectations.

Other economists predict a big rate cut but expect little impact.
Banks have pulled back from lending, and consumers are reining in
spending. The federal funds rate has already fallen well below the
Fed's 1% target in credit markets. The rate averaged just 0.14% on
Thursday, for example. Interest rates on Treasury bonds have also
fallen to historic lows as investors snap them up, desperate for a
safe investment.

Rates have fallen so far that some money market mutual funds, long
seen as safe investments, could shut down or post losses. Some funds
already earn less in interest from investments than it costs to run
the fund.

Nigel Gault of IHS Global Insight says tax and spending policy will
become increasingly important for the economy. President-elect Obama
wants Congress to pass an economic stimulus bill in January containing
hundreds of billions of dollars in new spending.

"Our central bank is trying to bypass a clogged-up credit system,
understanding that in the 1930s one of the things that happened is
credit collapsed," says Allen Sinai of Decision Economics. 

By Barbara Hagenbaugh and Sue Kirchhoff, USA TODAY
http://www.usatoday.com/money/economy/2008-12-14-federal-reserve-interest-rates_N.htm



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