Yesterday’s Fed Rate Cut…And Today’s Liquidity Plan

The Fed is scrambling to figure out what to do in order to slow (maybe try to prevent) the coming recession. Some would argue that, really, it’s already here. At any rate, the Fed cut a key interest rate yesterday. Because Wall Street was really hoping for a bigger bailout (25 basis points just wasn’t enough), stocks had issues.
And, in an effort to ward off criticism that the Fed is more concerned with inflation than it is with the credit crisis, the Fed unveiled a plan this morning to inject cash liquidity into the financial markets.
But the bottom line is …read more