Federal Reserve Slashes Fed Funds Rate 75 Basis Points
Jan 22nd, 2008 by Shaun Carter
In a surprise move, the Federal Reserve cut a key interest rate by three quarters of a percent today. This response was most likely fueled by the massive global stock sell off that occurred over the United State’s holiday weekend. In two days many global markets sold of over 10% of their value because of US recession worries.
The massive rate cut wasn’t enough to hold the market in positive territory as the Dow Jones Industrials traded down more than 150 points at the open. This move will hopefuly bolster hopes that the Fed knows how bad the situation is and that they will take any action necessary to stave off a recession that could quite easily push the global economy down with it.
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[...] if there will even be a rate cut, let alone a 50 basis point cut after the Fed’s emergency 75 basis point cut from last [...]