"It is possible that the Fed
decides instead to have Fed funds at 0.25% or 0.50%, given its desire
to pay banks some interest on their deposits, an authority that was
recently granted to the Fed in the recent TARP legislation. By paying
interest, the Fed can already engage in quantitative easing without the
need to cut rates to zero." Their reason is unemployment is heading to
8% by early 2010 and 10-year note should fall to 2.9% or lower.