Wednesday, March 19, 2008

Fed Lowers Rates 75 Basis Points

Many market participants were looking for 100 basis point cut, which I think the Fed should have done, moral hazards aside. But I don’t think that Bernanke could have gotten enough votes from the other memebers, so the market will have to settle for 75 bps.Here are the headlines from the FOMC announcement:FOMC lowers Fed Funds rate by 75 bps to 2.25%Fed cuts the discount rate 75 bps to 2.50%; move follows the emergency 25 bps cut over the weekendFed says will act in timely manner to promote [...]

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[Source: The Money Blogs]

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