Just when everyone thought the Feds were running out of economic ammunition, they’ve pulled another move no one expected. The Feds today have announced a 3.0% interest rate cut, putting the current interest rate at -3.25%.
When asked to explain what a negative interest rate means to the economy, Julio Fantigo from the Federal Reserve offered this explanation:
With the current economy in such a bad state, we at the Federal Reserve felt that we should do more to help the economy. It is our responsibility to do everything in our power to get Americans to spend more, more, and even more. So essentially we will be paying people to borrow money.
The solution to all short sighted problems, is more short sightedness.