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Re: Dollar VS Euro
[Re: wilsonck]
#77188
12/03/2015 01:53 PM
12/03/2015 01:53 PM
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Joined: May 2004
Posts: 1,194 Virginia
Snorkeller
Traveler
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Traveler
Joined: May 2004
Posts: 1,194
Virginia
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Current fed funds target range is 0 to .25 % - actual rate has been less than .25% - maybe in .13% range - I do not know. What is expected at December meeting is raise of target range to .25 to .5% - actual rates may be close to .5%. Hard to believe this change can really make much difference to markets at this point - but if I knew how markets are going to react I would be visiting my own island in Caribbean.
Last edited by Snorkeller; 12/03/2015 02:11 PM.
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Re: Dollar VS Euro
[Re: candu]
#77193
12/03/2015 06:09 PM
12/03/2015 06:09 PM
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Joined: Jul 2013
Posts: 837 Florida
wilsonck
Traveler
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Traveler
Joined: Jul 2013
Posts: 837
Florida
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candu said: So how does a negative interest rate work? Do they pay you to borrow money? The reason for a negative interest rate is that you won't leave your money in a bank account. They figure since you will loose money by leaving it in your bank account, you will instead spend your money therefore stimulating the economy.
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Re: Dollar VS Euro
[Re: wilsonck]
#77194
12/03/2015 11:07 PM
12/03/2015 11:07 PM
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Joined: Jan 2013
Posts: 249 Okanagan Valley, BC, Canada
jaxon60
Traveler
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Traveler
Joined: Jan 2013
Posts: 249
Okanagan Valley, BC, Canada
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We already have what wilsonck describes, just less obvious. If you have money in a savings account earning .05% when inflation is 1% to 2% you have what is effectively a negative interest rate. And here in Canada, the government wonders why we aren't saving <img src="http://www.traveltalkonline.com/forums/images/graemlins/hammer.gif" alt="" />
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Re: Dollar VS Euro
[Re: Snorkeller]
#77199
12/04/2015 04:41 PM
12/04/2015 04:41 PM
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Joined: Jan 2013
Posts: 249 Okanagan Valley, BC, Canada
jaxon60
Traveler
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Traveler
Joined: Jan 2013
Posts: 249
Okanagan Valley, BC, Canada
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There are so many problems with any government manipulating interest rates, but getting into that is probably beyond the scope of a travel forum <img src="http://www.traveltalkonline.com/forums/images/graemlins/Smile.gif" alt="" />
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