Cutting by half the cost of borrowing in U.S.

Sep 18

Posted by flicker as Nasdaq , News , U.S. , Wall Street

Drops to 4.75% on the cost of money the Federal Reserve, and is the first time since 2003 that the U.S. bank decided to lower the level ad the Fed Funds and discount rate also decreased from 5.75% 5.25%. The most immediate consequence is it recorded on Wall Street, the American Stock Exchange leavens its three indices for marine biotoxins, Dow Jones, Nasdaq and S & P record a gain more than 1, 5%. In the note that the Fed says U.S. economic growth in its first half of 2007, is moderate but was "the tightening of credit conditions has the potential for intensifying the housing market correction and restrain economic growth more in General, and is why humanity is decided to cut half a percentage point (50 basis points) the Fed Funds. Another consequence of the Fed's decision is that the gap between the cost of borrowing in the U.S. and Euroland is decreased to 0.75% in the Eurozone and the official rate is 4%, but the effect on currencies is met with immediate, ¬ thing that the Euro is raised to the maximum historic port at $ 1.398. But the effects were still found on raw materials like oil in a short time is quoted at $ 81.90 a barrel and gold is splashed the Comex altitude at maximum of 28 years, the $ 733.4 'oz.