djc
01-30-2008, 11:53 PM
Move follows last week’s cut in attempt to stabilize economy, markets
http://msnbcmedia3.msn.com/i/msnbc/Components/Interactives/Business/Economy/Federal_rate_chart_080131_h.gif
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WASHINGTON - The Federal Reserve on Wednesday cut a key interest rate for the second time in just over a week, reducing the federal funds rate by a half point. It signaled that further rate cuts were possible.
The Fed action pushed the funds rate to 3 percent. It followed a three-fourths of a percentage point cut on Jan. 22, a day after financial markets around the world had plummeted on fears that the U.S. economy was heading into a recession. That decrease had been the biggest one-day move in more than two decades.
The half-point cut Wednesday followed news that the economy had slowed significantly in the final three months of last year with the gross domestic product expanding at a barely discernible pace of 0.6 percent, less than half what had been expected. The report came amid increased concern from several quarters about a possible recession.
In a brief statement explaining their decision, Federal Reserve Chairman Ben Bernanke and his colleagues said that “financial markets remain under considerable stress.”
[URL]http://www.msnbc.msn.com/id/22916066/ (http://www.msnbc.msn.com/id/3685088/displaymode/1176/rstry/22916066/)
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we'll see what this accomplishes.
nothing
Next rate cut in ....
http://msnbcmedia3.msn.com/i/msnbc/Components/Interactives/Business/Economy/Federal_rate_chart_080131_h.gif
[/URL]
WASHINGTON - The Federal Reserve on Wednesday cut a key interest rate for the second time in just over a week, reducing the federal funds rate by a half point. It signaled that further rate cuts were possible.
The Fed action pushed the funds rate to 3 percent. It followed a three-fourths of a percentage point cut on Jan. 22, a day after financial markets around the world had plummeted on fears that the U.S. economy was heading into a recession. That decrease had been the biggest one-day move in more than two decades.
The half-point cut Wednesday followed news that the economy had slowed significantly in the final three months of last year with the gross domestic product expanding at a barely discernible pace of 0.6 percent, less than half what had been expected. The report came amid increased concern from several quarters about a possible recession.
In a brief statement explaining their decision, Federal Reserve Chairman Ben Bernanke and his colleagues said that “financial markets remain under considerable stress.”
[URL]http://www.msnbc.msn.com/id/22916066/ (http://www.msnbc.msn.com/id/3685088/displaymode/1176/rstry/22916066/)
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we'll see what this accomplishes.
nothing
Next rate cut in ....