The Fed cut 0.75%

The Federal Open Market Committee the Fed has cut its Fed Funds rate by 75% of a percentage point, bringing it to 2.25% from 3% the previous year. Also cut the discount rate, which rose from 3.25% to 2.50%. The cut of the Fed, by contrast, is slightly below expectations, which were a reduction of one percentage point. Wall Street at first did not show any enthusiasm and the rise of the indices is weakened, down to 1, 5 or so. ¨ Dopodichà indices have increased again and eventually the Dow Jones was +3.51 and S & P500 and Nasdaq gains above 4%. The level of 2.25% is the most low since February 2005. From mid-September, the Fed has cut rates Use of 3%. Sunday evening, the Fed has launched a series of measures to include brokerage company in funding provided through the window of the discount rate. Whether the cuts that the Fed decided by the facilities are aimed at restoring liquidity to a system crippled by the Financial Crisis of loans.

Related posts

• Subprime loans: FBI raid on Wall Street! (2)
• Systemic concerns and the real estate market (0)
• Crisis Loans: 175mila jobs at risk (0)
• Citigroup, probable devaluation to 24 billion dollars (0)
• Wall Street rises in Intel and Apple (0)