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To help keep the economy from completely going into a depression, the Fed agreed today to keep interest rates low for “some time.”

They are also thinking about taking some “unconventional” ways to help revive the economy.

Specifically, the Fed said it is now “prepared” to buy longer-term Treasury securities if the circumstances warrant such action.

“As expected, the study on buying longer-term Treasury paper is completed,” said Ram Bhagavatula, managing director at Combinatorics Capital. “Now they will buy it if needed. But with all the programs in place to buy risky assets, I don’t think it will be needed in the near-term.”

While the interest rate is the rate charged to banks to lend to each other, maybe the low rate will translate into even lower interest rates for mortgages and loans than now and some families will be able to refinance and lock in lower rates.

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Jeremy

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