The US - having rates sit at 0.25% for nearly 2 years - has nowhere to go but to 0.00%. That looks an awful lot like Japan's deflationary trap, and once you reach 0.00% and the economy turns to deflation, you've used up one of your tools that would have been used to battle deflation.
Instead, the Feds signaled that they were willing to buy even more long-term securities - as an instrument to effectively lower rates - than was previously announced a few weeks ago.
And why?
Because the second quarter GDP was revised sharply downward from 2.4% to 1.6%, after the government corrected for lower than expected inventory.
And if that wasn't bad enough, scientists have used technology to pinpoint the source of gaudy, and it goes back to ancient Rome.
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