Fed Cuts Key Interest Rate in Effort to Fend Off Recession

Source: Associated Press

WASHINGTON (AP) -- The Federal Reserve cut a key interest rate for the first time in four years, seeking with an aggresive half-point move to prevent a steep housing slump and turbulent financial markets from triggering a recession.

Read more: http://biz.yahoo.com/ap/070918/fed_interest_rates.html?.v=16

Nice to know they're not worried about inflation.

or whatever the greenback is worth these days.

And the fucking DOW is up almost 200.

There's a sucker born every minute.

Just askin' . . .

:rofl:

It's jumping back to $1.40 territory.

Given the choice between flattening financial markets and destroying the dollar, the Fed chose to destroy the dollar.

Pretty much the difference between starting the car with the garage door closed and putting the shotgun in your mouth - while the results are identical, there is a substantial difference in how quickly the results arrive.

1) Injecting money into economy

2) Heavy Federal Government borrowing

3) Big tax breaks

4) Lack of investment into the infrastructure

5) WAR

6) The average Americans savings -($3000)

7) More WAR

8) Clueless citizens because they are being lied to

9) Even more WAR

10) Lowering the interest rates


Now according to my economic studies 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 = INFLATION!!! Big Time...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aReULnk18DkI&refer=home

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4 3/4 percent.

Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.

Readings on core inflation have improved modestly this year. However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.

Developments in financial markets since the Committee's last regular meeting have increased the uncertainty surrounding the economic outlook. The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Charles L. Evans; William Poole; Eric S. Rosengren; and Kevin M. Warsh.

In a related action, the Board of Governors unanimously approved a 50 basis point decrease in the discount rate to 5 1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve banks of Boston, New York, Cleveland, St. Louis, Minneapolis, Kansas City and San Francisco.

I'll admit,I am no genius in the financial arena...

By readjusting their payment.

However, a person with a subprime will not be able to refinance due to the higher level of qualification now. So as far as I can see they'll be in the same boat when the rates eventually do go back up.

is what any respectable journalist would be talking about! I'll not hold my breath to read/hear/see this in the M$M.

Wow ...just wow. Let's cut the interest rate a 1/2 point just to temporarily hold off a Recession during Little Boots watch.

Nice.


Well there go's the U.S. Dollar.

Banks are losing money on bad loans and on dollar holdings as the dollar sinks on currency markets, they can't afford to keep bleeding money by cutting rates on credit cards or for new loans.

I don't expect to see a drop in the interest rates banks offer consumers, unless it's a token amount that won't be noticed.

half is sending the alarm up

this is going to get ugly

then there might be a manufacturing base.

Dow 13,732.89 Up 329.47 (2.46%)
Nasdaq 2,648.64 Up 66.98 (2.59%)
S&P 500 1,518.00 Up 41.35 (2.80%)

then the sub-prime fear will reappear and the market will drop 300 points. The money changers make their money on the volatility.

I mean, I too have made a few stupid decisions regarding finance and debt that I'm paying off now and will continue to do so for some time. It'll be nice though if I had some of this money to take care of those decisions. :(

C'mon, fellows! Just throw a little my way! C'mon...just a few thousand or so would do it! 10 or 20 thousand would be even better! C'mon...:)

You won't be able to afford anything new, like a house or a car, or a tank of gas, but your outstanding debt will get paid off with cheaper dollars.

I feel better already...I think.

What a stupid move.

Makes sense. cheaper dollars makes oil cost more. Thanks for the bandaid, Ben. Maybe instead of helicopter Ben, we start calling him Bandaid Ben.

$1.00 Canadian is now worth 98.64 cents US, highest level since 1977. Canadian dollar is up 15% this year.

We've been in a recession since '01.