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Today’s rate decision in the US is considered by many as a “non event”. Rates are at a historic low, and the only thing that the Federal Reserve can supply is an announcement about buying more date  US Treasuries.  

Or can it fall to the absolute zero?

Here are some interesting opinions:

Kathy Lien says that this could turn into a non event for a long time, and goes back to a similar period:

Going forward, traders may have the same disregard for FOMC rate decisions as they do for Bank of Japan meetings.  

Macro Man also deliberates on the option of an announcement of buying dated treasuries:

Will they or won’t they? That’s the question  du jour, at least with respect to today’s FOMC announcement. There’s obviously nothing they can do on rates, so the big issue is whether the Fed takes the leap and announces a program to buy longer-dated Treasuries.

But ForexTVBlog speculates that the absolute zero is here, in a post headlined “Will the Us Rate Cut Take it To Zero Today?”:

Special attention should be given to the U.S. Federal Reserve’s meeting on short-term interest rates. Traders pay close attention to this figure as it has a strong correlation with the value of the U.S. Dollar. If rates are cut, an increase in the amount of USD in circulation will weaken the Dollar.  

And what do I think? I’m afraid that Ben Bernanke will turn it into a non event, and stay like this for a long time. I wouldn’t like to see it go that way, since the FOMC statements and rate changes are always fascinating for forex trading.