Thursday
Jan 08th
Fed slashes rates
The US Federal Reserve has cut interest rates to 3.5%. A day after global markets sank due to worries of a possible U.S. recession, the Federal Reserve Bank decided to reduce the risk of further economic problems by a three-quarter point cut interest rate before U.S. markets opened.
A shock three-quarters of a percentage point reduction. Analyst Jeremy Stretch of Rabobank, described the Fed's move as "a sign of panic".
The US Federal Reserve has cut interest rates to 3.5%. A day after global markets sank due to worries of a possible U.S. recession, the Federal Reserve Bank decided to reduce the risk of further economic problems by a three-quarter point cut interest rate before U.S. markets opened.
The Fed's interest move came as a complete surprise. It was the first time since the days following the terrorist attacks of September 11, 2001 that the committee had called an emergency meeting. Stocks rebounded with most European indexes closing higher, while Wall Street regained some ground. Dow Jones Industrial Average fell more than 400 points at the start of trading.
What if, after the Bernanke bounce, stock markets continue to fall?
There are 1 items tagged with cut. You can view all our tags in the Tag Cloud
Trading in Foreign Exchange, CFDs, Options, Futures and Commodities
carries a high degree of risk to your capital and it is possible to
lose more than your initial investment. You should only speculate with
money that you can afford to lose. These products may not be suitable
for all investors, therefore please ensure that you fully understand
the risks involved and seek independent advice if necessary.
Please read our full Disclaimer.
Copyright © 2005 - 2009 Let's Gain - The Professional Signals Provider - Signals, Trading Systems, Technical Analysis.
