That’s our acronym of the day: ZIRP.
It stands for Zero Interest Rate Policy.
That’s what the Fed did today when it announced a target range of 0 to .25 percent.
Since the Committee’s last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. Financial markets remain quite strained and credit conditions tight. Overall, the outlook for economic activity has weakened further.
In other words, “the Fed is scared right now. I mean really scared. And they will do anything even remotely possible right now,” says Hale “Bonddad” Stewart.
Put another way, “that’s the equivalent of ‘Abandon Ship! Every man, woman, and child for themselves!'” says Andrew Leonard.