US interest rates at near Zero level
Posted by admin . Published on 26 March 2009, Received
The US FED is doing all the best possible to revive back the sagging economy. The US FED has now reduced their bank interest rates to near zero level, not done in the last several decades. This only indicates the really bad state of the economy.
The US FED has also indicated that the current low interest rate regime is set to stay for more time to come. This comfort statement is likely to induce more bankers to lend new loans to their customers and corporate clients.
But given the trillion dollar plus loss the US banking industry has suffered in the last few years due to the bad loans in their books, do not expect the banks to aggressively lend this time.
