Fed cut both Fed Funds Rate and Discount Rate by 50 basis points. It was a very drastic move and very unexpected. What was Bernanke thinking before making this decision? Throw inflation out of the window for now and bail out the financials first? Is this a recognition of a bigger problem in the US economy? Time will tell... Nevertheless, traders certainly welcome the cuts and the Dow Jones Industrial Average was up by 335.97 points.
Posted by Boon at 9:49 PM
No comments:
Post a Comment