Breaking News Alert: Fed Cuts Key Interest Rate by a Quarter Point
News Alert (1:32 pm) The New York Times: The Federal Reserve cut a key short-term interest rate todayby one-quarter percentage point, to 4.25 percent, signalingits concern that the credit crisis might be gradually damaging the broader economy beyond housing. Policy makers also cut the discount rate to 4.75 percent, from 5 percent, . . . Read More
Update (1:50 pm): Shortly after the above finacial alert, ARRA News Service received the following statement from Congressman Ron Paul, ranking member of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology, and a nationally recognized expert on monetary policy, regarding the Federal Reserve's decision to cut interest rates by 25 basis points:
"America 's economic difficulties, especially the problems in the housing market, are the direct result of the Federal Reserve's inflationary policies. While prices for gold, oil, and staple commodities continue to rise, the purchasing power of the dollar for all Americans continues to fall. Inflationary monetary policies created the problems in the economy we are seeing, and these problems will be made worse, not better, by more inflation. And today's action by the Fed is very bad news for American workers and retirees who are about to get hit with yet another jump in prices.
Make no mistake, the problems faced by the American people are not caused by unscrupulous mortgage brokers or the rising price of oil. These are symptoms of an economic disease caused by a spendthrift Congress enabled by loose monetary policy. Too many pundits praise the weak dollar as benefiting exporters, but they fail to see the harm done to thrifty, hard-working Americans. Rather than continuing to pursue a policy of easy credit and increasing debt, we need to return to a sound monetary system."
Updated: Market Snapshot (4:54 pm): U.S. stocks today took a steep dive after the Federal Reserve shaved both its Fed funds target and discount rates by 25 basis points and offered a more tepid assessment of the economy than equity investors were looking for. . . . Read More
Tags: economy, Federal Reserve, interest rate To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
Update (1:50 pm): Shortly after the above finacial alert, ARRA News Service received the following statement from Congressman Ron Paul, ranking member of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology, and a nationally recognized expert on monetary policy, regarding the Federal Reserve's decision to cut interest rates by 25 basis points:
"America 's economic difficulties, especially the problems in the housing market, are the direct result of the Federal Reserve's inflationary policies. While prices for gold, oil, and staple commodities continue to rise, the purchasing power of the dollar for all Americans continues to fall. Inflationary monetary policies created the problems in the economy we are seeing, and these problems will be made worse, not better, by more inflation. And today's action by the Fed is very bad news for American workers and retirees who are about to get hit with yet another jump in prices.
Make no mistake, the problems faced by the American people are not caused by unscrupulous mortgage brokers or the rising price of oil. These are symptoms of an economic disease caused by a spendthrift Congress enabled by loose monetary policy. Too many pundits praise the weak dollar as benefiting exporters, but they fail to see the harm done to thrifty, hard-working Americans. Rather than continuing to pursue a policy of easy credit and increasing debt, we need to return to a sound monetary system."
Updated: Market Snapshot (4:54 pm): U.S. stocks today took a steep dive after the Federal Reserve shaved both its Fed funds target and discount rates by 25 basis points and offered a more tepid assessment of the economy than equity investors were looking for. . . . Read More
Tags: economy, Federal Reserve, interest rate To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
Posted by Bill Smith at 4:59 PM - Post Link
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