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mega
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Joined: 23 Jan 2008
Posts: 113
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 Posted: Thu Jan 31, 2008 8:05 am Post subject: The Fed cut rates again by 1/2 point today
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Combined with the 3/4 point emergency cut last week (1st cut between meetings since 2001), we now have an Fed Funds Rate at 3%
| Quote: | | The Fed action Wednesday pushed the funds rate to 3 percent. It followed a three-fourths of a percentage point cut on January 22, a day after financial markets around the world had plummeted on fears that the U.S. economy was heading into a recession. |
They also signaled they may cut again if the economy does not start showing signs of strengthening.
I for sure do not know the answer and while I am sure we all welcome rates cuts, this often times signals just how bad of shape the economy is overall not just in sectors. We all know oil/gas prices have been soaring and for months now oil has been hovering above the $90 a barrel range. Gold has been soaring and hit an all time high last month of 890 an oz, ( gold often rises in time of inflation, recession, weak dollar and global turmoil .
So while we an individuals cheer cheaper rates, I am afraid we may be in for tough times ahead.
Just an opinion of course and I do hope the economy is able to do a turn around but it's looking pretty rough out there right now.
mega
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