Current Events > Economics
Feds cut rate 3/4 of a point in emergency move
jtyangel:
http://www.bloomberg.com/apps/news?pid=20601087&sid=ak1KitW7I_4s&refer=home
--- Quote ---an. 22 (Bloomberg) -- The Federal Reserve lowered its benchmark interest rate in an emergency move for the first time since 2001 after stock markets tumbled from Hong Kong to London and a jump in the U.S. unemployment rate threatened to push the economy into recession.
The central bank lowered the target overnight lending rate to 3.5 percent from 4.25 percent, the Federal Open Market Committee said in a statement in Washington. Policy makers weren't scheduled to gather on rates until Jan. 29-30.
``While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate,'' the Fed said in a statement in Washington. The FOMC took the action ``in view of a weakening of the economic outlook and increasing downside risks to growth.''
--- End quote ---
Futures right now have DOW down at almost 400 points. Things are crazy over at my other half's desk that trades in short term securities.
Lord Undies:
I knew when democrats took control of the US purse strings last January this was in the cards. Stock markets hate US democrats. Democrats make for a very unstable private sector.
You can look for at least another 1/4 point cut in the near future.
jtyangel:
--- Quote from: Lord Undies on January 22, 2008, 08:05:48 AM ---I knew when democrats took control of the US purse strings last January this was in the cards. Stock markets hate US democrats. Democrats make for a very unstable private sector.
You can look for at least another 1/4 point cut in the near future.
--- End quote ---
Less then 10 minutes until open. Futures down about 425 points. yippeee....DU is climaxing no doubt.
Hawkgirl:
I'm impressed with the Fed's quick reaction to this.
Let's hope it does it's job.[the cut, that is]
Hawkgirl:
On the flip side, it would have been nicer if he was pro-active and not reactionary.
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