Posted on 01/22/2008 6:36:27 AM PST by shrinkermd
The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, cut its target for the federal funds rate by three-quarters of a percentage point to 3.5%, the biggest single move it has made on interest rates since a three-quarter percentage point increase in November 1994.
The Fed, in a departure from recent tradition of moving rates at regularly scheduled meetings of policy makers, took the action week before its scheduled January 29-30 meeting "in view of a weakening of the economic outlook and increasing downside risks to growth." (Read the Fed's statement.1)
It hinted that it is prepared to keep cutting rates if necessary, saying, "Appreciable downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks. "
"This is very constructive and I think it shows this country and the rest of the world that our central bank is nimble and can move quickly in response to market conditions,'' Treasury Secretary Henry Paulson said following the move.
After the Fed announcement, trading in the federal funds futures contracts indicated markets anticipate the Fed will bring the target for the federal funds rate to 2.75% by mid-March.
(Excerpt) Read more at online.wsj.com ...
No, the interest rates were cut because Greenspawn was allowed to raise them TOO high, causing the housing market to crash the year Americans would be voting on our President.
A good fist step. Now for the next 3 ... start drilling, mining and increasing our domestic energy sources, eliminate the capital gains tax and make the tax cuts permanent.
(chuckle)
Yep.
got my vote
What the Dems in our msm and on CNBC forgot, as they have talked down the US economy for the past six months to help Hillary win, is that overseas markets can’t imagine that any responsible people would do this for political reasons and they actually believe that America is going belly up. They know that when the dog dies, the fleas die, too, and that in spite of all the global-economy talk, the US still rules the economic future of the world.
I don’t know a lot about the process of developing an area into a producing oil field, but I can’t help but feel there must be steps that can be taken that will prove or disprove the estimates about oil reserves without doing, or threatening, damage to the environment.
It would be a crap shoot though. If it turns out the energy isn’t there it would mean higher, much higher, prices for the existing proven reserves. OTOH, if it turns out there are indeed usable reserves then it should lower prices.
Either way, we need to find out for sure what’s there and make the initial moves to make whatever is there available.
I believe you are absolutely right. Who in their right mind would want to talk an economy into a recession which could lead to thousands of people losing their jobs, homes, whatever?
Oh wait, I know who................
“Now for the next 3 ... start drilling, mining and increasing our domestic energy sources, eliminate the capital gains tax and make the tax cuts permanent.”
Drilling and mining is very long term. We are in a pickle right now. We need stimulus.
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