Breaking Financial News: Emergency Fed Rate Cut
January 22, 2008 by Miranda Marquit
Filed under Finance
Today’s breaking financial news is an emergency Fed rate cut of 75 basis points, bringing the overnight lending rate to 3.5 percent and the fed funds rate to 4.0 percent. This is the biggest cut since 1982. Apparently, while the Fed still won’t say “recession,” it is starting to take the economic situation seriously. MarketWatch reports on the emergency Fed rate cut:
With the move coming just eight days before the next scheduled meeting, “there can be no doubt that the timing of this morning’s move is aimed at supporting global financial markets after yesterday’s global equity meltdown,” wrote Joshua Shapiro, economist for MFR Inc.
It is worth noting that the stock market is still struggling with worries, despite the move, and stocks are not surging to recovery. Expect quite a bit of volatility today, and in the days to come.
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