Filed under: Market matters, Federal Reserve

The board has unanimously agreed to a 50 bps cut. The Federal Reserve has cut the Fed fund rate from 5.25% to 4.75%. Now watch the markets go!

The Federal Open Market Committee said that economic growth was moderate during the first half of the year. The credit conditions has the potential to worsen the housing correction and to restrain economic growth in the future. The action intends to forestall some of the broader economy effects arising from troubled financial markets and to promote moderate growth overtime. Core inflation has improved modestly this year but the FOMC still feels there’s a moderate inflation risk. The committee will continue to monitor and act accordingly in the future.

The Dow industrials was up over 200 points but now about 170 points up. Definitely a surprise to the upside. The Nasdaq composite and the S&P 500 are up even more.

The Fed discount rate was also cut by half a percentage point.

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This entry was posted on Tuesday, September 18th, 2007 at 4:32 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.