Tuesday, January 22, 2008

Fed Cuts Interest Rate

咁又如何.. 只係俾多一個機會 D 人走貨.. (今日買左 Put 既朋友就大鑊了)

Fed Cuts Interest Rate Amid Global Stock Sell-Off and Fears of Recession

WASHINGTON (AP) -- 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 biggest one-day move by the central bank in recent memory.

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.

The Fed action was the most dramatic signal it can send that it is concerned about a potential recession in the United States. It marked the biggest one-day move by the central bank in recent memory.

The Fed decision was taken during an emergency telephone conference with Fed officials on Monday night. Those discussions occurred after global financial markets had plunged Monday as investors grew more concerned about the possibility that the United States, the world's largest economy, could be headed into a recession.

In a brief statement, the Fed said it had decided to cut the federal funds rate "in view of a weakening of the economic outlook and increasing downside risks to growth."

Source : http://biz.yahoo.com/ap/080122/fed_interest_rates.html
Tuesday January 22, 8:31 am ET
By Martin Crutsinger, AP Economics Writer

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