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The Federal Reserve Cuts Interest Rates by 1/2 Point
By The 800lb Gorilla | September 19, 2007
As expected, The Federal Reserve is giving the rate cuts everyone has been waiting for. Let’s see if the healing process begins for a rapid recovery or continue to crawl and disrupt the economy even more. Enjoy this very important event in The Jungle!
The Fed Slashes Interest Rates by 50 Basis Points by Mortgage News Daily.
“The Federal Reserve slashed benchmark interest rates by a half point in an aggressive move to prevent the economy from moving into recession and to ease the pains of the housing bubble. The decision to cut the overnight federal funds rate from 5.25% to 4.75% was unanimous. This is the lowest level since May of 2006 and the first time the Fed has cut interest rates since June 2003. It was the first 1/2 point cut since November of 2002.
The Fed also lowered its discount rate it charges banks for direct loans by the same percentage.
“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,” the Fed said in a statement outlining its decision.
“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,” it said.
The stock markets responded favorably by moving higher as most analysts had only predicted a 1/4 point cut. The Dow was up nearly 2.4% to 13,723 in late trading Tuesday.”
For further insight, continue with this headline at CNNMoney.com’s, Fed Cut Could Buoy Housing Markets,by Les Christie.
See you folks soon with more Jungle Blog business. Enjoy!
Topics: Blogroll, Editorial, Misc, Mortgages, Real Estate |
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