05/29/2009 05:12 am ET Updated May 25, 2011

Fed: Interest Rate At -5% Is Ideal

The ideal interest rate for the US economy in current conditions would be minus 5 per cent, according to internal analysis prepared for the Federal Reserve's last policy meeting.

The analysis was based on a so-called Taylor-rule approach that estimates an appropriate interest rate based on unemployment and inflation.

Read more on Financial Times