Nbadan
12-11-2007, 03:12 PM
Fed issues 0.25 cut to fed funds rate(4.25) and fed discount rate(4.75)
Fed Statement:
"Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation. In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.
Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."
Wall street had been anticipating a .50 point cut to the Federal Funds rate, so the Dow is taking a hit today....Feds doing what it can to inject credit into the markets without letting inflation get out of control...but all these are just temporary fixes, what the market needs, and I'm not just talking Wall Street, I'm talking Main Street, is a major correction to free itself of a lot of the bad loans out there....
Fed Statement:
"Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation. In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.
Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."
Wall street had been anticipating a .50 point cut to the Federal Funds rate, so the Dow is taking a hit today....Feds doing what it can to inject credit into the markets without letting inflation get out of control...but all these are just temporary fixes, what the market needs, and I'm not just talking Wall Street, I'm talking Main Street, is a major correction to free itself of a lot of the bad loans out there....