Until the Great Recession, the Fed limited its purchases of Treasury paper to short-term bills that carry no interest rate risk.
Wage stickiness could stop inflation falling much below 2%, and could justify the expectation of many economists that short-term interest rates will fall no lower than 2.75%.
And, because the Fed is not involved in setting short-term interest rates, it creates no opportunities for arbitrage.
When even corporate treasurers are taking their money out of short-term securities and parking it in no-interest cash, you know the big boys are discovering the same anxieties Mom and Pop have known for a year as they ran out of safe havens for their assets.
The Fed has little or no influence on the velocity of money short of raising short-term interest rates to a level that causes an economic slowdown or recession.
Veteran actress Kiruna Stamell, who plays Mr. Davis's love interest on "Life's Too Short, " has no problem with "Lord of the Rings, " since the characters are mythical.
WSJ: Little People Wait for 'Mirror Mirror' and 'Snow White and the Huntsman'
But some analysts said the summit was long on promises and short on action - as there was no clear pledge for co-ordinated tax and interest rate cuts.
The award-winning Police Homeowner Loan Program offers police officers low-interest (4%), short-term (20 year) financing with no down payment for the purchase of rehabilitated houses in low-income, inner-city neighborhoods in Columbia.
But unlike the Fed, which has the authority to anchor short-term interest rates and conduct open-ended Treasury purchases, the SPR grants the President no such sway in the oil market.
Operation Twist where the Fed sells short-term Treasuries and purchases longer-term Treasuries indicates that the Fed has no intention to raise interest rate targets until 2013 at the earliest.
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