Ammo Low, Fed Eyes Last Bullet to Lift Economy (CSM): “For the past 2-1/2 years, the Federal Reserve has lowered interest rates to stimulate the economy. The result has been a virtual gully washer of money in the economy. But now, as the Fed contemplates yet a 13th cut, it has become much more difficult and complicated to pump up the economy by lowering short-term interest rates. So, when the Fed meets Tuesday and Wednesday to review the economy and make a decision on interest-rate policy, it will have to consider why this rainstorm of cash hasn’t done the job. If business won’t build new factories at these low interest rates, will even lower rates make any difference? And, as interest rates get closer to zero, Fed chairman Alan Greenspan will have to ponder if he needs to keep some ammo in his pouch in case he needs it later this summer.”
