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Is the Fed Out of Ammunition?

posted by Darren Gersh, Washington Bureau Chief at 10:16 AM on 03/18/08

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Assuming the Fed cuts short term interest rates to 2% or close to it today, what happens next?

Can the Fed keep cutting rates? How low could it go?

If you want answers, consult the authority. Ben Bernanke answered this question in a speech given almost six years ago.

Let's hope it doesn't need it, but the Fed has plenty of ammunition left.

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