January 22nd, 2008
In a surprise pre-meeting move, the Fed cut the rates by 75 Basis Points (0.75%).? They dropped the overnight rate from 4.25% to 3.50%.? This came after the European and Asian markets had huge losses yesterday.? The US markets were closed for the Martin Luther King, Jr. holiday.
They are hopping such a large cut will give the economy the ncessary shot in the arm to stave off or get us out of a recession.? The FOMC left the door open for further cuts if things detoriate further.
We’ll be back later.? CD Rates will be dramatically affected by the cut.
-- By +Chris Duncan