Fed Hacks Rates; 1st time between meetings since 9/11

[tekisui]

The United States Federal Reserve took the unusual step of an inter-meeting rate cut Tuesday morning as financial turmoil worsened around the world.

The Federal Open Market Committee announced that it was cutting its federal funds target rate by 75 basis points, to 3.5%. It was the first time since since September 2001 that the Fed cut the federal funds rate between meetings, and also marked the biggest one-day move by the central bank in recent memory.

"The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth," said the Fed.

Despite the action, or perhaps because of it, stock prices plunged in New York when the markets opened. In early trading, the Dow Jones Industrial Average fell more than 400 points.

The central bank also left room open for a further rate cut when it met at the end of this month. "The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks," it said.

more at link: http://www.forbes.com/markets/2008/01/22/fed-rate-cuts-markets-equity-cx_af_0122markets07.html

[NightWatcher]

1. were things soooo bad that they couldnt wait til their meeting next tuesday?

this shows a panic to me, but I oft fell asleep during economics class

[MercutioATC]

3. Haven't you been watching the global markets??

The rest of the world doesn't have MLK Day. They had a HUGE selloff over the last 2 days.

[L0oniX]

4. Isn't that something. The rest of the world plummets while we have a holiday.

It just doesn't seem right. I suppose if it were Christmas day when the Trade buildings were destroyed we would have ignored that too. I wonder what will be worse? How many people will commit suicide when the stock market completely drops off the edge of the planet and whether there will be more financial loss from the stock market crash or the loss of the Morgan Dean Whitter floors in the Trade towers?

[msongs]

2. let the market crash - shake out all those speculators and greedhogs

as most people know a purge every day or so is good for our health. Now is the time to bring down all the shaky scams and schemes so that the body economic can regain its health.

Msongs

[SlowDownFast]

7. Agreed.

We need an economic enema, and slashing rates is only prolonging the inevitable and making it worse in the long run: stagflation.

[sendero]

8. I third..

.. that emotion. The greater the dysfunction, the greater the "correction".

And our economy is hyper-dysfunctional, and a lot of oblivious Americans are about to learn the price of electing morons to run things. It's not just some 2-bit country on the other side of the world getting a taste of American firepower, it's gonna be right here at home, a long slow creaking downturn that no amount of "stimulus" or bullshit tax shenannigans will fix.

That ought to wake the fuckers up.

[phantom power]

5. Of course, hacking the rates discourages foreign investment. Checkmate.

[Hydra]

6. Yup

Downward spiral not arrested in the least.

I'm well aware that the Fed are crooks, but at least they look stupid to the common man right nwo :evilgrin:

[SlowDownFast]

9. That ain't the only thing they're hacking. n/t