Posted on 03/03/2020 7:08:49 AM PST by karpov
WASHINGTON—The Federal Reserve cut its benchmark rate by a half percentage point on Tuesday morning, delivering a booster shot to stem potential economic disruptions from the spreading coronavirus epidemic.
Tuesday’s cut, which lowered the federal-funds rate to a range between 1% and 1.25%, is the first to occur in between a scheduled policy meeting since the 2008 financial crisis.
The action was approved unanimously. In a statement, the central bank also held out the prospect for further stimulus. “The committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy,” the statement said.
(Excerpt) Read more at wsj.com ...
Trump mentioned over the weekend he was looking for the Fed to do something...
make of this what you will...
Fed’s James Bullard says rate cuts possible only if coronavirus turns into pandemic
Market had a huge reaction . We will see if it holds. It was selling prior to the announcement
btw, before someone jumps in and tries to claim I am trying to influence the market..I am still flat. Don’t want my head handed to me .
Stocks erased early losses to turn solidly higher after the Federal Reserve delivered a rare, inter-meeting rate cut, dropping the range of its benchmark rate by half a percentage point. The Dow Jones Industrial Average was up 183 points, or 0.7%, at 26,886, while the S&P 500 advanced 27 points, or 0.9%, to 3,117. The Nasdaq Composite gained 51 ponts, or 0.6%, to 9,003.
Yes it was a huge reaction. When I saw it I knew it was some kind of news. Spy back down again.
In 2017, these bonds were sold to private investors on the premise that they would lose their money if any of six deadly pandemics hit. If WHO declares a pandemic, the World Health Organization will keep the money and will use it to fight the outbreak. If there is an outbreak of disease turned into a pandemic, then investors don’t get their initial money back.
Fire up the Printing Presses, get them greenbacks flowing, the bigger the debt the better...
Very interesting. I wonder if this plays into the fact that WHO said they weren’t using the word Pandemic. DOnt know if that has changed...things are moving fast.
It seems to me that — up until recently — “pandemic” was wholly a epidemiological term. But as of 2017 I think it suddenly got financial repercussions. It may now be a lot harder to use the term “pandemic” because there are financial implications.
Will Meade
@realwillmeade
50% chance of another rate cut in 3 weeks
Yes. I couldn’t understand why they weren’t using the word as they have in the past.
You have pinpointed why.
Trump mentioned over the weekend he was looking for the Fed to do something...
...
I think he was criticizing them for not doing anything, which he was right to do. He called them followers rather than leaders.
Wow excellent find.
Better late than never
(2X)
The cut brings the funds rate more in line with the market. The Fed was manipulating rates to be above the market for way too long.
Investors with experience will understand what happened yesterday (DOW up 1200+) and the reaction to the interest rate move today.
Buy on the rumor (of the rate cut)
Sell on the news.
Long term the cut is a clear positive.
Time to refi
I just checked the close. Zikes.
If it doesn’t hold 25,000 it could see 22,500..the dow.
Once it broke below 28000 it was likely, of course not certain, that it would test 25,000
Think 30,000
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