Current Event

http://www.nytimes.com/2008/12/17/business/economy/17fed.html?_r=1&hp This is is the link to the aritcle.

My article “Feds cut bench mark rate to near zero” by the New York Times is about how the Federal Reserve cut its interest between zero and .25 percent. This was done to help fight back against the recession. Japan used a zero rate policy for six years to fight against deflation. The Federal Reserve said it will use any tool to help the economy get back on its feet. Such a buying large quantities of debt and mortgaged-backed securities. The federal reserve isn’t the only one trying to fight against the recession but almost every store has been slashing prices.

This does not come as a big shock to me. It was only a matter of time before the federal reserve had to make a big sacrifice for the country. As for the other places slashing prices before Christmas, it only makes sense that’s what they would do. People want to make money and the only way to make money during this time of economic decline is to have people save money. I can tell you from a personal opinion that people will not be buying super expensive gifts but more likely to buy a lot of smaller, cheaper gifts. My birthday was the fifteenth of December and I got a bunch of gifts from the family and range mostly around the fifteen to twenty dollar range.