And now the news reports are pouring out.
- Fed Gov. Bernanke sees rates as low as zero if need be (CNN.com; Reuters): Federal Reserve Governor Ben Bernanke said on Wednesday that the central bank would be prepared to cut interest rates all the way to zero if necessary to prevent a fall in inflation. Speaking to a university audience, Bernanke said if the Fed were to reduce overnight borrowing costs to zero, it would look at so-called nontraditional methods of trying to spur growth, such as buying long-term bonds. He expressed confidence that those methods would work if the Fed needed to turn to them.
- Fed’s Bernanke Says Growth May Not Stop Disinflation (Bloomberg): “Federal Reserve Governor Ben Bernanke said stronger economic growth in the next year may not halt further declines in inflation and that the central bank is prepared to hold or cut its benchmark interest rate.”
