Fed Cuts Key Rates By Only Quarter-Pt.; Wall St. Not Happy
RateEmpire.com
Once again for the third time, the Federal Reserve lowered the interest rates. But the enthusiastic investors seemed not at all happy as the rate was cut only by quarter point. The Federal Reserve took this move to ease the credit and the housing market and as a whole to save the economy from going into recession. But the twisting point here is that the market is quite upset about the rate cut as it was expecting a bigger cut.
However, the stock market is again showing negative results with loss in the major stocks. The Dow Jones Industrial, the Standard & Poor’s 500 and even the Nasdaq composite fell, suffering their worst losses in a month. Moreover, the bond market also jumped down as a result of the odd rate cut.
According to the policymakers this action will definitely support the economic growth. But unfortunately, the investors disagree and want a strong signal from the Fed.
Original Article
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