FOMC 50/50 Delivery
The FOMC made its rate cut today and delivered on 0.50% on both the FED FUNDS and on the discount rate, so now Fed Funds will be targeted at 3.00%. Wall Street economists had been expecting a 0.50% rate cut…
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The FOMC made its rate cut today and delivered on 0.50% on both the FED FUNDS and on the discount rate, so now Fed Funds will be targeted at 3.00%. Wall Street economists had been expecting a 0.50% rate cut down to 3.00%, so this was right in line with what the markets were hoping for.
Some brief comments were as follows:
- financial markets remain under considerable stress;
- credit has tightened further for some businesses and households;
- recent information indicates a deepening of the housing contraction as well as some softening in labor markets;
- expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation…
You can see the full statement here.
At 2:10 PM EST, about 5 minutes before the scheduled FOMC time, these were the market levels:
DJIA 12,447.46 (-32.84; -0.26%)
S&P500 1,358.17 (-4.13; -0.30%)
NASDAQ 2,348.33 (-9.73; -0.41%)
10YR-Bond 3.697% (+0.0390)
The markets have rallied after this announcement, mostly as the tone of this announcement does not eliminate further cuts in the future.
Jon C. Ogg
January 30, 2008
Contact [email protected] for any questions or corrections.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
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