Federal Reserve Expected to Cut Interest Rates at End of January, 2008

Federal Reserve Chairman Ben Bernanke has announced that the Fed is prepared to slash interest rates to avoid a recession caused by housing and credit problems.
Analysts expect a quarter to a half point reduction before the end of January.
The Fed chief made clear the central bank was prepared to act aggressively to rescue a weakening economy. “We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks,” he said. Some economists believe the Fed will slice its key interest rate by a bold half percentage point when the Fed meets next on Jan. 29 and 30. Others, however, think the Fed will go with a more modest one-quarter percentage point reduction, given concerns that high energy prices could spark inflation. via AP

Federal Reserve Expected to Cut Interest Rates at End of January, 2008 2008-07-25T01:57:00-07:00 Rating: 4.5 Diposkan Oleh: Merlyn Rosell