What is Zero-Bound?

Zero-Bound is when short term interest rates have been lowered by the Federal Reserve close to 0%.
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Zero-Bound is when short term interest rates have been lowered by the Federal Reserve to 0% (or near 0%, such as 0.5%).

The Fed normally lower interest rates in order to keep inflation down.

Zero-Bound can also refer to a falling stock price that is expected to hit zero.

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