Thank you Fed: Interest Rate slashed 75 Basis Points
The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, cut a key interest rate by three-quarters of a percentage point on Tuesday. The Fed said it was cutting the federal funds rate, the interest that banks charge each other on overnight loans, to 3.5 percent, down by three-fourths of a percentage point from 4.25 percent.
Federal Reserve Chairman Ben Bernanke and his colleagues took the action after an emergency video conference on Monday night, a day when global markets had been pounded by rising concerns that weakness in the world's largest economy was spreading worldwide.
Despite the Fed's bold move, Wall Street plunged at the opening. The Dow Jones industrial average was down 311.99 points in the first hour of trading. The market has been recovering since the morning and one of the big winners has been Sears Holdings (SHLD). Todd was on the money: Sears now advertising Brands
In a brief statement explaining its move, the Fed said that "appreciable downside risks to growth remain" and officials pledged to "act in a timely manner" to deal with the risks facing the economy. The action was approved on an 8-1 vote.
Analysts said the fact that the Fed did not wait until its meeting next week to cut rates underscored the seriousness of the situation.
Stay tuned as we all will be watching the events unfold today. Hang in there.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- A Nation Of Immigrants? | ZeroHedge
- Did The White House Just Declare War On Russia? | ZeroHedge
- Stocks Are Not Long Term Investment Vehicles (Video) | ZeroHedge
- Wikileaks Releases Part 15 Of The Podesta Files, Bringing Total To 26,095 Emails | ZeroHedge
- Prepare For The Unthinkable | ZeroHedge
- Quick Break from the Madness | ZeroHedge
- Gold Bars Go to $6 Premium in China as Yuan Hits Fresh 6-Year Lows on Capital Outflows | Financial Sense
The most relevant financial news and articles from the Internets
- 14 of the most ridiculous excuses people have used to call in sick | Business Insider
- Violence is rising near the US-Mexico border — 'El... | Business Insider
- Americans shouldn't have to register to vote at all | Business Insider
- Trump will announce how he'd spend his first 100 days as president in... | Business Insider
- Astronomers reported 234 mysterious signals in space — and yes, it... | Business Insider
- Russia has muscled the US out of Syria | Business Insider
- Goldman Sachs now wants to lend you money — here's why | Business Insider