"The surprise reduction in the federal funds rate from 4.25 down to 3.5 percent marked the biggest one-day rate move by the central bank since it cuts its discount rate by a full percentage point in December 1991."
Fed Statement:
"The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent.Will this work, or will rates eventually be cut to nearly nil?
The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets".
3 comments:
I think another .5% cut is in store by spring, but it will likely stop there.
Bye, Bye Dollar. It was nice knowing you when you actually had some purchasing power.
I called all my representatives today. I was mad - had to call somebody and b*****
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