The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4-3/4 percent.
Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time. (Federal Reserve)
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Really?
ReplyDelete4% growth in the second quarter and the DOW a few percent from its all time high?
All BS- gold over 730 an oz- oil near 82 c'mon!
Hey, don't forget about that great wage inflation! Why its... its... darn.
ReplyDeleteWell heck, its because the savings rate was too high... oh wait, that is still negative. :(
Well this is obviously to fix our trade balance. (Oh wait... oil.)
We're screwed.
Got popcorn?
Neil
Will this will improve the house market condidtion?
ReplyDeleteWill this will improve the house market condidtion?
ReplyDeleteNo. In order for the housing market to improve, it must correct. The large cut in the target rate is probably an indication of how very bad the nation's economic future looks financially.