Fed Cuts Slashes Three-Quarters Off Interest Rate
The Federal Reserve cut the Fed funds rate 0.75% to 2.25%. There were indications the Fed would cut a full point. This is the sixth rate cut since last summer and puts pressure on other central banks to cut their rates.
The Dow leaps in response.
“Federal Reserve Cuts Rates Three-Quarters of a Point”
UPDATE: In the Federal Reserve Open Market Committee’s statement they reaffirm what most of us already knew: we’re living with a weak economy:
Recent information indicates that the outlook for economic activity has weakened further. Growth in consumer spending has slowed and labor markets have softened. Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters.
They address inflation concerns but think the weakened economy will decrease demand and prices for energy and commodities.
In looking for blogospheric reaction I stumbled upon this well-trafficked Left-wing weblog who wants to fix the economy by impeaching Bush. Talk about a one-trick pony. Yeah, adding political uncertainty to the financial will bring about confidence. [via memeorandum]
I was being somewhat facetious about impeaching Bush. No, I don’t think it’d help the economy. But shoot, it’d sure be fun.