Mortgage Rates

What 0% Interest Rate Really Means





When the Federal Reserve cuts interest rates, the stock market tends to rise. However, when the Fed cut rates to 0% on Sunday, March 14, Dow futures plummeted and trading was halted. Why didn’t it go up, and what does a 0% interest rate mean?

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What 0% Interest Rate Really Means

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43 comments

  1. I suspect the Republicans will hold any recovery plan hostage to get their way as usual.

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  2. This guy has clearly been affected by the quarantine. He is in massive need of a barber ASAP!

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  3. I didn’t hear a basic explanation of anything.

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  4. 50% tax on anything above 100 million

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  5. That guy didn’t blink once lol

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  6. The market was already plummeting when they zeroed the rate. It likely did not drop because they zeroed it as there was already a panic when the fed decided to make that foolish move on a sunday

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  7. The private bank called the Fed is the one that has the us citizens paying the government loans to bailout Wall Street gangsters in 2008 foreclosure scheme and toxic debts.

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  8. It's hardly fiscal policy if the government just prints money to increase spending

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  9. a big issue today is that stock markets don’t necessarily reflect today’s economy or the projections of the future thereof. they‘re mostly a gambling house and hence much more sensitive to speculative behavior than to actual economic impacts.

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  10. Not just inflation, but also Bank fees will chip away at those savings.

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  11. Bitcoin is the solution

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  12. The Federal reserve is a failure

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  13. Money is useless these days

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  14. USA needs permanent #UBI for citizens (and I'm a Libertarian)

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  15. Numbers can go negative, mate.

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  16. Dont care if i can't earn 1.8% on savings, when i pay 4.6 mortgage interest rates. GIve me 2% mortgage interest and ill find my own 1.8 % .
    WHY ARE MORTGAGE COMPANIES STILL CHARGING 3.5 3.7 WHEN THEY GET THE MONEY AT ZERO?

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  17. Ordinary people suffer the most at this crisis, yet Trump still prefers to give more money to billionaires after the previous trillions of dollars of tax cuts, rather than giving it to the people in need. SMDH

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  18. The stock market drop and hoarding is completely the fault of the hysteria driven media. All of them.

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  19. Administration is trying to make the emergency look like nothing to try to save the economy, flash news: is screwed anyway!

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  20. Nice

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  21. This is absurd! What are those without a properly funded emergency fund to do?

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  22. fed running out of bullets? kidding me? unlimited QE, massive helicopter money until inflation comes back.

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  23. There's always online shopping.

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  24. This guy's voice is worse than Wuhan virus. I cannot stand idiots who speak like this.

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  25. She's pretty, haha.

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  26. No, I feel like I don’t want to spend because it’s obvious that the previous economy was unstable and therefore I should save for the bad times that are coming

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  27. Dow Jones dropped by 7%p then trading was halted due to circuit breaker rule.

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  28. That "expert" totally missed the mark on why the interest rates were dropped. This video is a total waste of time.

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  29. Easy… Trump is desperate…

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  30. A WOMAN NAME SILVERSTEIN TALKING ECONOMICS…INSANITY..POVERTY HAS BEEN UP

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  31. Looming within sight a 1000% /yr inflation rate. And kiss goodby to the dollar as a global trading currency. When US debt denomination is no longer being bought by other sovereign nations , and you own FED has to buy government debt to maintain the government and the military industrial complex operating, that’s when you know your own government is deep creek.

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  32. So take out your money from the bank and make new accounts when this is all over with.

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  33. Over a period of time, money (without any real underlying) has become a tool to enslave people.

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  34. The fed tried it, and it's alright that they did, but we really need the 0% after this is over. Probably mid to late summer.

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  35. …so…auto loans interest rates aren't dropping?

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  36. Remember folks, vote 'R' for Recession!

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  37. As a financial analyst, I'm pretty disappointed with this video.

    I understand 'dumbing down' stuff to explain but, this is just so ridiculous.

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  38. I think it’s unfair to judge the cut as a failure just from the Dow though. It’s supposed to help the economy, not the stock market

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  39. Didn’t trump chastise Powell to lower? I knew that dumbass would crash the market I cashed out my portfolio a year ago knowing this sort of thing would happen. How are you trump supporters doing today with you buisness man president I have no sympathy for you

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  40. Or we could just ignore the stock market. Most of the stocks are owned by the richest investors anyway.

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  41. Is all monopoly money, Gold Is King !!!

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  42. The fed is dead

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  43. It’s been pretty much 0% in the Netherlands for a while, and it is 0% right now.

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