Hear: A Time To Be Reckless : Planet Money On today's Planet Money, an economist argues that the Federal Reserve needs to let its hair down.

Hear: A Time To Be Reckless

Hear: A Time To Be Reckless

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On Tuesday, the Federal Reserve cut its key interest rate to the lowest on record. On Wednesday, we sort through what, exactly, that means.

Today on Planet Money:

-- Simon Johnson, former chief economist of the International Monetary Fund, explains what the federal funds target rate is, why anyone would want to change, how you do that, and what it means. Bonus: He loves the reckless feel of it.

-- But listener Joel Weyrick of Iowa still wants to know: Why would the Federal Reserve set a range for the new target rate, instead of just announcing a new solid number? Is this part of a new strategy?

Download the podcast; or subscribe. Intro music: Robyn Hitchcock's "I Often Dream of Trains." Find us: Twitter/ Facebook/ Flickr.