Fed Chief: More Economic Pain to Come
http://www.foxbusiness.com/story/markets/economy/fed-chief-economic-pain-come/
Federal Reserve Chairman Ben Bernanke indicated that the Fed may consider lowering rates in the mist of the financial crisis’ going on today. Bernanke spoke with the National Association of Business Economists. He told them that times are bad. He told them that changes need to be made to help the economic downfall in the world. Since the oil prices are slightly going down, rates should as well be going down. They need to remain consistent. The lowering the rates mean basically to lower the price for borrowing money. More people will borrow money if the rates are lower.
The fed funds rate is at 2.0% now. A year ago the rate was at 5.25%. A much bigger percentile when it comes to large amounts of money. So as you can see it has been decreasing, and they are now considering decreasing it more. This economic problem is not just happening in the United States. It is a global problem. Bernanke said that global markets are under “extraordinary stress” and the Fed is looking for more ways to reduce funding pressures. He also noted that the $700 billion economic- rescue plan would be “to everyone’s benefit.” Bernanke mentioned as well to NABE that negotiations regarding the purchase of Wachovia, by Wells Fargo, Citigroup, or a combination of the two are “on going.”
More accountants work for the Fed than anyone else. When there is something purchased on account. There is a two percent interest on it as well. If you don’t pay for it in a certain amount of time, that cost becomes two percent higher. For example on your accounts payable balance, that amount paid will increase if you continue to not pay....