Monday, April 27, 2009

Fed study puts ideal US interest rate at -5%

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FT.com
 All times are London time: Monday Apr 27 2009

Breaking news
Fed study puts ideal US interest rate at -5%
The ideal interest rate for the US economy in current conditions would be minus 5 per cent, according to internal analysis prepared for the Federal Reserve's last policy meeting.

The analysis was based on a so-called Taylor-rule approach that estimates an appropriate interest rate based on unemployment and inflation.
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