Fed readies for balance sheet tool as rate nears zero

The Federal Reserve may reduce its main interest rate to the lowest level on record and prepare for one of the boldest experiments in its 94-year history on Tuesday: using its balance sheet as the key tool for monetary policy.

The Fed’s Open Market Committee will probably cut the benchmark rate in half, to 0.5 per cent, according to the median of 84 forecasts in a Bloomberg News survey. The central bank may also signal plans to channel credit to businesses and consumers by further enlarging its $2.26 trillion of assets. (via Fed readies for balance sheet tool as rate nears zero).

Japan has been there and done that ...

And the US asked the Japanese to be men enough and bite the bullet. Endure the pain. Let market forces work out the fat in the economy. Let the fat sizzle.

Lost these pearls of wisdom, eh ... Ben?