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Top US officials offered reassurances that the worst of the economic downturn is likely over, helped by unprecedented efforts to keep credit flowing |
Top US officials offered reassurances that the worst of the economic downturn is likely over, helped by unprecedented efforts to keep credit flowing, though the recovery will be slow.
Fed officials often stress that there is a lag before the economy responds to measures taken to support growth, such as interest rate cuts, and that those lag times can vary.
Since the financial crisis erupted in 2007 the Fed has slashed its benchmark lending rate from a peak of 5.25 per cent, reaching the current range of zero to 0.25 per cent in December 2008. The Fed has also created an alphabet-soup of programmes to support credit markets and revive lending in different segments, especially home mortgages.
