Posted on 10/02/2008 8:55:27 AM PDT by TigerLikesRooster
Fed officials considering further rate cuts: report
October 2, 2008 9:11 AM ET
Reuters
TOKYO (Reuters) - Federal Reserve officials are weighing further interest rate cuts, even if Congress approves a $700 billion financial industry bailout, because of a worsening economic outlook, the Wall Street Journal said on Thursday. A rate cut is still far from certain, partly because of inflation worries, the WSJ said in an unsourced report on its website.
"The Fed's willingness to consider additional rate cuts marks a turnaround from the past few months, when soaring food and energy prices turned its attention to inflation risks," the Wall Street Journal said.
Currency traders in Tokyo said that while there was some chatter about the article among market players, the impact on the dollar seemed to be limited.
The dollar index, which measures the dollar's value against a basket of six major currencies, rose 0.6 percent on the day to 80.162.
Even before the article, investors were bracing for the Fed to lower interest rates as early as this month.
(Excerpt) Read more at news.moneycentral.msn.com ...
Ping!
Wrong f’n move...a depression is coming.
. . . . .
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only fiscal policy can help. hello inflation!
People like me who save, have been bailing out the banks with ever lowering interests rates for the past two years! Enough!
Unbelievable. It’s getting close to mattress-stuffin’ time.
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!
If a depression is coming then lower rates is the right move. If anything they’ve waited too long.
Just what we need. More liquidity, more inflation! Debt, consumption, and devalued money! What more could you ask for besides 2 wars and a welfare state that’s about to get bigger...
They are trying to address this:
Would you recommend raising interest rates in a recession?
Thank you for "getting it."
Our country has been spending like a bunch of drunk sailors for years now.
Still no real transparencies for the derivatives markets nor commodities futures trading changes.
The reduction in the overnight lending rate is just for banks. Reducing the capital gains tax and federal income tax for corporations, cutting spending (not a spending orgy like last night) will create jobs and improve the credit markets.
Take a look a the US auto industry...they just got a $25 billion pork chop, still, no one has been buying for months. Don't matter. People are scared as jobs are being cut, food and energy have skyrocketed with many working families earning < $100K per year.
4 cyc used compacts are what is being bought for cash.
No, and as any Freeper can tell you, a recession occurs when GDP growth is negative for two or more consecutive quarters.
I’m waiting for someone to tell me how we can be sure that the Paulson plan will in fact loosen the credit market, when all the liquidity that’s been pumped into the market for the last two weeks seems to have been used for holdin’ cash.
100% right. Why people don’t see this I’ll never know. This idiocy over inflation assumes monetary policy is the only way to control it. How about cutting spending?
We are in the jam we are in PARTLY because the Fed raised rates too fast in 03-05.
Don’t worry, we are in a negative spiral and meet that definition very soon.
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