Fed cuts interest rate to 4.75%

[hedgetrimmer]

Source: BBC NEWS

US interest rates have changed for the first time since mid-2006, reduced from 5.25% to 4.75%, an unforeseen 0.5% cut which shot shares to four year highs.
Analysts had expected the Federal Reserve to cut rates 0.25% to prevent a housing market downturn and the"credit crunch" from denting the economy.

By making money cheaper to borrow, people can spend and invest more, revitalising the economy, they say.

Some wanted the Fed to leave rates on hold to focus on controlling inflation.

~~~~more~~~

Read more: http://news.bbc.co.uk/2/hi/business/6999821.stm

---

Must... save ... dollar...

[tridim]

1. Bet you a dollar my ARM rate still goes up.

[Trillo]

2. Greenspan claimed

we'd need to see double digit interest rates to hold inflation at (higher levels than we've seen in the past) maybe 5%.

Any guess takers on inflation rates in 1 year? (interest rate adjustments relate to year later inflation rates, or so I've read). Will we see future inflation rates in excess of 10%? I'd say yes. This meets the definition for "hyperinflation". Then somewhere along the line a new currency will be announced.

Any way it's sliced, the poorer among us are going to hurt even more than now. CEOs will be fine, isn't that comforting.

[ThoughtCriminal]

4. I get the feeling

That the goal is to avoid the consequences until after the next election.

Soylent Greenspan was probably underestimating the inflation rate.

[Robbien]

3. Just more Fed help for the uber rich hedge funds

Such a sorry sight.

[Dont_Bogart_the_Pretzel]

5. Maby the credit card companies will follow suite

yea right....