The Federal Reserve System has the power to set a basic interest rate at which banks lend to each other, having a decisive effect on the interest rates that banks in turn charge their business and individual customers.
With our economy in serious recession, the Fed wisely decided this week not to add any additional burden on our economy.
So it left its basic interest rate between 0 and 0.25 percent — the lowest since recession became evident in December 2008. By “doing nothing” it “did the right thing.”