- Maine Caucuses a Chance to Right the Romney Ship
- Greek Debt Saga Back on Center Stage for Markets
- Greece Now Struggles to Overcome Mistrust
- Obama Budget Bets Other Concerns Will Trump the Deficit
- China President-in-Waiting to Sample Slices of America
- MF Global Trustee Sees Shortfall of $1.6 Billion
- Iran to Announce 'Very Important' Nuclear Progress
- Traveling Light in a Time of Digital Thievery
- UK Police Arrest Five at Murdoch's Sun Newspaper
- In Search of America's ‘Hottest Forecasters’
- Dow vs. S&P 500: Which is a Better Investment?
- Mick Fleetwood on the MP3 ‘Dumbing Down’ of Music
- Avis on the Road to Strong Growth: Analyst
- Private Homebuilders: Dead Men Walking
- LinkedIn’s Growth Is Already Priced In: Analyst
- The Real Reason Behind Bank of America’s Rally
- 5 Hedge Funds’ Top Stocks Soar After 2011 Rout
- This Valentine’s Day Love Is Served on a Silver Platter
MOST SHARED
- Traveling Light in a Time of Digital Thievery
- Amid Efforts to Rescue Greece, a Lack of Trust From Allies
- Obama Budget Bets Other Concerns Will Trump the Deficit
- Greek Debt Saga Back on Center Stage for Markets
- When Love and the Fed Collide
- Greece Warns Bailout Rebels of Unknown, Dangerous Path
- Why Greece Will Default, Leave the Euro Zone
- Private Homebuilders: Dead Men Walking
MOST POPULAR
HOT ON FACEBOOK
US Economy Needs Interest Rate of Minus 5%: Report
Text Size 
An ideal interest rate to help the US economy to cope with the recession would be a negative 5 percent, the Financial Times reported on its Web site, quoting an internal Federal Reserve analysis.
It said the analysis was based on a so-called Taylor-rule approach, which estimates an appropriate interest rate based on unemployment and inflation.
Fed policy makers meet for two days starting Tuesday, but are widely expected to hold fire and assess the effects of the measures already taken to boost the economy.
"We see little reason to expect major policy changes," Goldman Sachs economists wrote in a note to clients, quoted by Reuters.
In March, the US central bank announced plans to inject an additional $1.1 trillion into the economy, buying mortgage debt and Treasurys.
As rates cannot be cut below zero, the Fed's internal research suggests it should maintain unconventional policies that provide stimulus roughly equivalent to an interest rate of minus 5 percent, the Financial Times wrote.
Fed staff suggested the central bank may need to expand its asset purchases beyond the $1.1 trillion already pledged, the paper said.
But the Fed is likely to ponder carefully what its next move will be, to see how the financial conditions respond to the quantitative easing measures it has already taken, the paper added.
- Marketing clichés aside, sometimes diamonds are for investing.
- The ‘Fast Money’ traders weigh in on fashion related stocks from apparel to footwear.
- This list of the 10 most active cities for speed traps was compiled by Trapster.com. See if your town is there.
- This Valentine’s Day should prove a love fest for restaurants, as many couples will be dining out.
- Here’s a look at Westminster Kennel Club’s most successful breeds—and how much they cost.
- What kind of homes do celebrity couples share? Here’s our updated list. Take a look.
Data is a real-time snapshot *Data is delayed at least 15 minutes
