Fed cuts rates and euro climb

At first she is worried no one, perhaps hoping that the situation was resolved with the passage of time, but now the crisis in the U.S. housing sector is the thorn in the side of the Federal Reserve, yesterday forced to intervene again the cost of borrowing, with a cut of 0.25% on both the Fed Fund (reduced to 4.50%) and the discount rate (5%).
The Fed's decision narrows the gap of course with European rates: the differential is now just half a percentage point and could vanish if the ECB, just because of inflation pressures, decided to abandon the strategy of wait and see pursued in 'last period.
In short, the intention of the Fed action on rates, combined with those carried out in September, "could help the economy and promote moderate growth in the near future." Let's hope so!

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