Ideal discount rate in the current circumstances the U.S. economy is minus 5%. That was reported by The Financial Times referring to the report analysts the U.S. Federal Reserve. Analysis of the Fed is on the so-called Taylor rule, which takes into account the level of inflation and unemployment in the country.
Under existing U.S. laws, the refinancing rate the Fed can not be less than 0%. Currently, the refinancing rate the Fed is between 0% to 0.25%.
Since the beginning of the crisis several times the Fed lowering the discount rate, allowing, thus, the money banks are cheaper and cheaper.
U.S. GDP in the fourth quarter of 2008 decreased by 6.3 percent, while the first quarter of 2009 is expected to be negative 4,5-5 per cent.
Unemployment in the United States in March 2009 reached 8.5 percent, which is the worst rate in the last 27 years. In doing so, for the first time in 54 years in the country recorded an annual deflation.