Fed interest rate cut seen this week

[babylonsister]

Fed interest rate cut seen this week

By JEANNINE AVERSA, AP Economics Writer 2 hours, 3 minutes ago

WASHINGTON - For the first time in more than four years, the Federal Reserve appears ready to lower interest rates to prevent a housing meltdown and a painful credit crunch from driving the economy into a recession.

A rate cut would affect millions of borrowers, with the intention of getting them to spend and invest more, which would revitalize the economy.

In one of their most important and anxiously awaited decisions, Fed Chairman Ben Bernanke and his central bank colleagues meet Tuesday to determine their next move on interest rates. Those policymakers are widely expected to cut an important rate, now at 5.25 percent, by at least one-quarter of percentage point. Some analysts predict a bolder step, a half-point reduction.

If the Fed drops the rate, then the prime lending rate that commercial banks charge many individuals and businesses would fall by a corresponding amount. It now is at 8.25 percent.

more...

http://news.yahoo.com/s/ap/20070916/ap_on_go_ot/fed_interest_rates

[cliss]

1. Well, hope springs eternal doesn't it?

Can you imagine? A stock market that starts moving upward, based on HOPE. Nothing really to go on, just some serious begging and praying. In the hopes that the Fed will save their sorry asses.

Note.
This rescue is designed for the ones who are really getting hammered from the current subprime mess: mortgage lenders, banks, developers, even home owners who are just about to go over a cliff. It will help them in that suddenly, interest rates will be Ok again. That means more people will be able to buy a house, and maybe more subprime mortgages will be issued!!!

If that isn't desperation, I don't know what is.

What if they don't lower it?

[depakid]

2. "What if they don't lower it?"

Maybe the exchange rates won't go into freefall.

[skids]

3. Congrats, Canucks!

If the above is right, you could see the loonie trading even or higher than ours by year end!

Ghod we are so fucked.

[AlCzervik]

4. a cut of 25 basis points will might revitalize the economy?

lemme know how that works out Fed.