The Federal Reserve reduced short-term interest rates on Wednesday for the second time in eight days, meeting widespread expectations by investors on Wall Street for a big rate cut.
In lowering its benchmark Federal funds rate by half a point, to 3 percent, the central bank acknowledged that it is now far more worried about an economic slowdown than rising inflation. Now when Fed economists say "economic slow down" what they really mean is RECESSION!
The fiscal package (stimulus package) and the Fed’s own rate reductions would amount to a one-two punch aimed at jolting the economy enough to keep it out of a recession, or at least mitigate the effects of any downturn that might develop.
Investors are now looking to the national employment report on Friday for a clearer view of the economic outlook. Economists expect the Labor Department to report a gain of 63,000 jobs for January after a weak gain of 18,000 jobs in December. A less cheerful report could convince investors that a recession has already begun
In lowering its benchmark Federal funds rate by half a point, to 3 percent, the central bank acknowledged that it is now far more worried about an economic slowdown than rising inflation. Now when Fed economists say "economic slow down" what they really mean is RECESSION!
The fiscal package (stimulus package) and the Fed’s own rate reductions would amount to a one-two punch aimed at jolting the economy enough to keep it out of a recession, or at least mitigate the effects of any downturn that might develop.Investors are now looking to the national employment report on Friday for a clearer view of the economic outlook. Economists expect the Labor Department to report a gain of 63,000 jobs for January after a weak gain of 18,000 jobs in December. A less cheerful report could convince investors that a recession has already begun
Stack, Stack, STACK people!
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