Cacildis

A crina

Think of the Fed's target as the wholesale price of money. Banks and other lenders will still charge more than zero interest when they lend it to you and me. That’s how banks make money. But borrowers with very good credit will be able to get a great deal on a short-term loan.
The problem is that with the economy shrinking, businesses cutting back and banks worried about getting their money back, lenders have become stingier about providing credit. To get the economy moving again, the Fed typically cuts the cost of money to encourage more borrowing.

Tax Zero

For the first time in its history, the Federal Reserve has set a target for short term interest rates as low as zero percent. The moves signals that the central bank has entered a new phase in its campaign to revive a battered U.S. economy. Here's what the Fed is up to:
Q: What does it mean if interest rates go to zero? Does everyone get to borrow money for free?
No. Pushing the federal funds rate down to zero doesn’t mean everything comes with zero-percent financing. It means banks can now raise cash — for very short periods — without paying interest.