Fed Policies Effective Even With Rates At Zero - Presented by: The Aol. On Network

Research published by the San Francisco Fed showed the U.S. Federal Reserve has been able conduct effective monetary policy even though its main policy lever, a target for short-term rates, has been jammed at zero since late 2008. With short-term interest rates pinned down, some economists have worried that the Fed has less ability than usual to influence long-term borrowing costs, a key channel for adding juice to the economic engine.



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