Wednesday, January 30, 2008

Fed cuts half point

The Federal Reserve cut its key interest rate another half-point, to 3%, as part of a continued effort to keep the U.S. economy from falling into a recession.Here’s the Fed’s thoughts on housing …

Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.

To read the entire Fed statement, CLICK HERE!

Pimco Fed watcher Paul McCulley says … “The right stuff — half percent, with a balance of risks statement skewed to concerns about growth, leaving the door open for more. ben is honoring the covanent he made with the markets on Jan 10: You become more risk seeking and I will back you. Yea verily, he has.”

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