Federal Reserve Cuts Rates 50 Basis Points
Jan 30th, 2008 by Shaun Carter
Chairman of the Federal Reserve, Ben Bernanke, has announced a further 50 basis point cut in the Fed Funds rate bringing it down to 3%. This cut is the second cut in 8 days and brings the total of recent cuts to 1.25%.
I think Bernanke has changed his position on a lot of things since he took office and announced his intention to target inflation and not be at the mercy of the market. But now Bernanke has fit perfectly into his nickname of “Helicopter Ben” as he rushes to the rescue of the stock market traders who demanded and continue to demand steep cuts in the discount rate.
Not surprisingly, CNBC is reporting that the market is anticipating a near 80% chance of a further 50 basis point cut at the next FOMC meeting. This just goes to show that Helicopter Ben is now in the business of pleasing traders while killing the value of the dollar and turning a blind eye to inflation targeting, which was the foundation of his core beliefs when he took office.
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