Fed Cut 3/4 point to 2.25%

Fed Cut 3/4 point to 2.25%

www.cnbc.com

It’s not the economy, stupid.

It’s the credit crunch.

The size of the Federal Reserve’s expected interest rate cut this afternoon may help stimulate a sluggish economy. But like the several cuts before, it is unlikely to unfreeze the credit markets, especially the mortgage one.

(visit the link for the full news article)

I am not surprised, I did not expect a full 100 base point cut.

The Fed cannot do anything without government aid now, cutting rates will only hurt the Dollar and push up inflation. But the markets have not reacted too bad, currently up 2.14%.

Banks just need to start loaning to each other. Fed cannot cut rates to kick start confidence.

www.cnbc.com
(visit the link for the full news article)

should of been 100 basis, they have no ballllls!, i made some nice profit off of bear stearns today tho so im not complaining $$$$

[edit on 18-3-2008 by Timewavezer0]

Markets are starting to fall because investors wanted a full 1%.

Many will agree with me, it is not the job of the Fed to back up the stock market.

Full fed statement

The Federal Open Market Committee decided today to lower its target for the federal funds rate 75 basis points to 2-1/4 percent.

Recent information indicates that the outlook for economic activity has weakened further. Growth in consumer spending has slowed and labor markets have softened. Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters.

reply to post by infinite


I knew that, we have a market that is now hook to low interest rates every month, and bail outs from the fed every week.

Does that surprise me that the markets will fall again? no.

as being an investor on this rollercoaster ride, i know that its wrong that we have to rely on the fed for market support, but hey if you can make money off of these decisions go with it , short the hell out of stocks , moneys there folkssss!!

reply to post by infinite


Heh heh, the burn is starting to show.

Now then, your Government has two options; Cut it's losses and start dealing with the damage that's been done, or Keep trying to support an economy that is going to fail.

Economic Reformation is becoming a nessecity, and you've been at it for what?

400 years?

Dem' Fat Cats in Washington got too fat for their own good.

Originally posted by marg6043
I knew that, we have a market that is now hook to low interest rates every month, and bail outs from the fed every week.

Does that surprise me that the markets will fall again? no.

The US government will have to act and start buying mortgages now to take the cancer out of the market. Bernanke is a smart man, understands the US economy very well and is educated on the great depression.

Keep cutting rates, when inflation is high, you'll end up breaking the economy by allowing this credit crunch to spread to the real economy.