Fed cuts rate to zero

[Sucker]

yem ptuundi vaa ? Nduku down ?

[MaZA]

Just now, Sucker said:

yem ptuundi vaa ? Nduku down ?

PANIC

[joblessjack]

11 minutes ago, jefferson1 said:

today rates from wells

 

30-Year Fixed Rate	4.000%	4.128%
30-Year Fixed-Rate VA	3.875%	4.243%
20-Year Fixed Rate	3.875%	4.051%
15-Year Fixed Rate	3.250%	3.454%
7/1 ARM	3.500%	3.443%
5/1 ARM	3.500%	3.380%

does new fed cut mean all the rates will be 0 or 0.25 ?

[karna11]

Mortogage intrest rates antha effect undadhemo 

[tom brady]

Nice...thaatha thavving all goyyis possible to push us into recession

[r2d2]

meanwhile Thaatha ‘delegates’ to the governors...

 

[Sucker]

12 minutes ago, r2d2 said:

meanwhile Thaatha ‘delegates’ to the governors...

 

Thnak you Thathayya 

[jefferson1]

47 minutes ago, joblessjack said:

does new fed cut mean all the rates will be 0 or 0.25 ?

Kadu /rates taggavu antunnaru 

not sure let’s see what happens 

[nag_mama]

1 minute ago, jefferson1 said:

Kadu /rates taggavu antunnaru 

not sure let’s see what happens 

Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program

PUBLISHED SUN, MAR 15 20205:00 PM EDTUPDATED 18 MIN AGO

 

Steve Liesman@STEVELIESMAN

 

 

 

 

KEY POINTS

• In an emergency move Sunday, the Federal Reserve announced it is dropping its benchmark interest rate to zero and launching a new round of quantitative easing.
• The QE program will entail $700 billion worth of asset purchases entailing Treasurys and mortgage-backed securities.
• Markets responded negatively, with Dow futures pointing to a drop of 900 points when the market opens Monday morning.

 

Federal Reserve Chair Jerome Powell holds a news conference following the Federal Open Market Committee meeting in Washington, December 11, 2019.

Joshua Roberts | Reuters

The Federal Reserve, saying “the coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” cut interest rates to essentially zero on Sunday and launched a massive $700 billion quantitative easing program to shelter the economy from the effects of the virus.

The new fed funds rate, used as a benchmark both for short-term lending for financial institutions and as a peg to many consume rates, will now be targeted at 0%-0.25% down from a target range of 1% to 1.25%.

 

Facing highly disrupted financial markets, the Fed also slashed the rate of emergency lending at the discount window for banks by 125 bps to 0.25%, and lengthened the term of loans to 90 days.

Despite the aggressive move, the market’s initial response was negative. Futures pointed to a decline of some 900 points at the Wall Street open Monday morning.

The discount window “plays an important role in supporting the liquidity and stability of the banking system and the effective implementation of monetary policy ... [and] supports the smooth flow of credit to households and businesses,” a separate Fed note said. 

The discount window is part of the Fed’s function as the “lender of last resort” to the banking industry. Institutions can use the window for liquidity needs, though some are reluctant to do as it can indicate they are experiencing financial issues and thus sends a bad message.

The Fed also cut reserve requirements for thousands of banks to zero. In addition, in a global coordinated move by centrals banks, the Fed said the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank took action to enhance dollar liquidity around the world through existing dollar swap arrangements.

 

The banks lowered the rate on these swap line loans and extended the period for such loans. Fed Chairman Jerome Powell is scheduled to hold a press conference via telephone at 6:30 pm ET. The actions by the Fed appeared to be the largest single day set of moves the bank had ever taken, mirroring in many ways its efforts during the financial crisis that were rolled out over several months. Sunday’s move includes multiple programs, rate cuts and QE, but all in a single day.

The quantitative easing will take the form of $500 billion of Treasurys and $200 billion of agency-backed mortgage securities. The Fed said the purchases will begin Monday with a $40 billion installment.

The Fed cut rates from the previous target range of 1% to 1.25% and said it would remain there “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”

Cleveland Fed President Loretta Mester was the lone no vote, preferring to set rates at 0.5% to 0.75%, which would have represented a 50 basis point, of half percentage point, reduction.

The Fed added in its statement that it “is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals.”

It appeared, though it was not entirely clear, that the meeting that took place will replace the regularly scheduled meeting of the Federal Open Market Committee.

The move follows several actions by the Fed over the past two weeks in which it enacted a 50 basis point emergency rate cut and expanded the overnight credit offering, or repo, for the financial system up to $1.5 trillion.

[kevinUsa_banned3]

Arey 

savings rate is zero 

not mortgage 

[Narcos]

malli notlu guddi market loki vadultaru...assame... 

[HugoStrange]

1 hour ago, 2020 said:

Is it good?

not yet. two weeks ago 3.25 unindi

[Paaji]

2 hours ago, sri_india said:

• The Fed cuts the federal funds rate target range by 100 basis points to 0%-0.25%, as the "effects of the will weigh on economic activity in the near term and pose risks to the economic outlook," the central bank said.
• To make sure that money keeps flowing through the economy, the Fed is also taking several other actions including a quantitative easing program to add least $700B of Treasury and agency mortgage-backed securities to its balance sheet.
• To support households' and businesses' access to credit, the Fed announced measures related to the discount window, intraday credit, bank capital and liquidity buffers, reserve requirements, and — in coordination with other central banks — the U.S. dollar liquidity swap line arrangements. 

Federal to the zero but for the common man buy to sell credit card cash when getting paaji?

[HugoStrange]

1 hour ago, joblessjack said:

does new fed cut mean all the rates will be 0 or 0.25 ?

nope, fed rates are not related to mortgage rates. Its 10 year yield treasuries bonds are related to mortgage rates. Last week Mortgage securities lo money evadu pettaka interest rates from 3.125 to 4 ayyayi, Fed 200 bn pump chesthunnaru mortgage securities loki, so will go down. Don't expect the mortgage rates go down below 2.75

[karna11]

2 minutes ago, HugoStrange said:

nope, fed rates are not related to mortgage rates. Its 10 year yield treasuries bonds are related to mortgage rates. Last week Mortgage securities lo money evadu pettaka interest rates from 3.125 to 4 ayyayi, Fed 200 bn pump chesthunnaru mortgage securities loki, so will go down. Don't expect the mortgage rates go down below 2.75

I agree, ikkada naku oo logic ardam raledu ippudu fed 200 bn pump cheste MSB loki , how mortogage prices goes down 

Please explain?