USA

The USA Financial Crisis

The USA Financial Crisis

In December of 2008, the Federal Open Market Committee decided to lower the Fed Funds target rate to a range between 0-0.25%, a historical low. In the statements released after the meeting of December 16th, the FOMC stated that, “The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability.

In particular, the Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time” (Federalreserve.gov, 2008). The Fed's decision to use all of the ...