Federal Reserve Cuts Interest Rates By Half Percentage Point

[Mrs. Overall]

Source: Wall Street Journal

The Federal Reserve cut its benchmark rate by a half percentage point on Tuesday morning, delivering a booster shot to stem potential economic disruptions from the spreading coronavirus epidemic.

Tuesday’s cut, which lowered the federal-funds rate to a range between 1% and 1.25%, is the first to occur in between a scheduled policy meeting since the 2008 financial crisis.

The action was approved unanimously. In a statement, the central bank also held out the prospect for further stimulus. “The committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy,” the statement said.

Fed Chairman Jerome Powell is scheduled to hold a press conference at 11 a.m. ET.

Read more: https://www.wsj.com/articles/federal-reserve-cuts-interest-rates-by-half-percentage-point-11583247606?mod=e2tw

[MelissaB]

1. Recommended!

[Botany]

2. Not to worry the poor people can pay for this hand job to the bankers.

https://www.democraticunderground.com/100213040090#post2

[FBaggins]

5. This doesn't help the banks

Bank assets tend to reprice faster than their liabilities... which means that an unexpected cut of this size actually hurts the vast majority of them.

Bank stocks immediately turned negative on the news.

[bucolic_frolic]

3. Rates are going back to zero

The Fed has no idea what to do. The country is awash in capital and no one wants to borrow. We have overcapacity to the moon after 11 years of Quantitative Flatulence. Soon the confiscatory policies will be in place, negative interest rates, they'll be chopping capital just like they chop real estate.

[Bernardo de La Paz]

6. The tax give-away to the 1% gives capital, but no opportunities. Tax cuts to middle class is spent

Money that is spent is money in motion, which moves the economy.

The tax give-away was parked in real estate and artwork. Without boosting innovation and consumer spending, that money stops running.

When you give tax breaks and subsidies to the poor and middle class, they spend it mostly.

[old guy]

4. So, cutting the rate kills the virus!

Who knew!

[iluvtennis]

12. + 1. nt

[PSPS]

13. You got it. Corona happened because rates were too high. I guess it was mad.

[Yavin4]

7. Forget about trying to save money. Everyone must gamble in the markets

We've come to a point where we cannot live with an even small decline in the markets for a short amount of time.

The markets have become this magic money machine that has to reach record highs no matter what.

The downside that everything become unaffordable.

[beachbumbob]

8. simple bailout for the leite so profits are kept private and risk is socialized

same old same old.

[Wellstone ruled]

15. All about saving the

Hospitality Industries from complete Collapse. This Group as a whole is getting killed by Cancellations and over leveraged debt. We had 11 Casino's change hands during January. All done with Junk Bonds in order for a couple Billionaires to cash out. BTW,the Orange Anus was associated with this,his Hotel Partner bought 3 joints all on Paper.

[beachbumbob]

19. capitialism includes risk of LOSS as well

[Wellstone ruled]

20. True.

But not in the World of the Orange Anus. He wants his Rubes to pick up the tab much like he has screwed his investors over the decades.

Privatize the Profits and Socialize the Debts.

[central scrutinizer]

9. The Dow is not the economy

I’m so sick of hearing, “we’re doing this to help the economy”. Bullshit. It’s to reinflate the Ponzi scheme/casino that is the stock market. It does nothing to help the poor schmuck working two jobs

[SayItLoud]

11. x10, Plus

The shorts took their $ and drove the market yesterday. Let's just take a poll here....how many DUers sold short and covered in last 2 days, how many trade with micro second ability? How's your *509K* doing? (sarcasm).

[SayItLoud]

10. Prepare for tRUMP to start screaming for QE soon. NT

[central scrutinizer]

14. Dow down 500 right now (8:30 PST)

[jmbar2]

16. Covid19--Interest rates ---nonsequitor

This is Trump trying to juice the stock market on Super Tuesday. It's the only thing he's got going for him at this rate, besides the adoration of the MAGAts.

[jmbar2]

17. Aaaand, it's not working

ETTD

Everything Trump touches dies - Rick Wilson

[Vinca]

18. They haven't got much left to cut, do they?

This is the mistake the King made with his slash and burn economic policies during a good economy.

[IronLionZion]

21. The market is still going down

it was going up this morning up until the Fed cut rates. Then they got spooked and fear set in.

Not much left to cut when the Trump slump officially sets in.

[bucolic_frolic]

22. Fed now acts preemptive

Time was they reacted. So this must be 10 times worse than we're being told. Not 1/4 point, a 1/2 point. News as bad as Lehman.

[maddogesq]

23. 1970's inflation in 3...2...1...

And if supply lines get bogged down from Corona...lookout!

The Fed won’t be able to raise rate like they should have in 2017.

Notice stuff like gold jumped in price.