Money Makers Mentor

Fed Cuts Rates to Near Zero

On Sunday, the Fed announced it would cut the federal funds rate to a range of 0 to 0.25 percent in an effort to encourage the flow of credit to consumers and small businesses.

The Fed will buy at least $500 billion in Treasury securities and $200 billion in mortgage-backed securities over the next coming months to assist in the dropping of the markets, the central bank said.

Normally interest rates being dropped is made to incentive borrowing and excite the nation to have money flow more easily throughout all sectors.

Thus, creating the value to money to drop, due to the thought of what most consumer think money is, turns out to be credit. As a result, it pays to invest in goods and services, assets such as houses, stocks and other investments due to the low cost of “acquiring…

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