Federal Reserve

SwineCast 0538, How's The Ag Economy Holding Up?

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mp3SwineCast 0538 Show Notes:
  • Taking a look at the agricultural economy in comparison with the anticipated rebound in the general economy with Brian Briggeman of the Federal Reserve Bank of Kansas City. He talks with Eric Atkinson.

FED action and the Demand for Pork

     As the US and global recession deepens, the monetary authorities in the UK, the EU and the US are driving interest rates to record low levels.  Today the FED cut the Federal Funds rate, the overnight lending rate to banks, to a range of zero to 0.25 percent which is the lowest rate on record.  The action is an effort to make holding cash by banks so disadvantageous that they are tempted to begin lending in order to earn a return.  The action is meant to increase the money supply, an action which is deemed safe now since its primary danger (inflation) appears as no immediate threat due to slumping demand and rapidly falling prices for everything from housing to gasoline. 

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