You have commented 358 times on Rantburg.

Your Name
Your e-mail (optional)
Website (optional)
My Original Nic        Pic-a-Nic        Sorry. Comments have been closed on this article.
Bold Italic Underline Strike Bullet Blockquote Small Big Link Squish Foto Photo
Submit your comments on this article
Home Front Economy
Fed leads global coordinated rate cut, eases by 1/2 point
2008-10-08
AoS note: do NOT embed article links in the post.
The U.S. Federal Reserve led a coordinated round of global official rate cuts on Wednesday, easing by a half-point, as did the European Central Bank, Bank of England and Swiss, Canadian and Swedish banks. In an attempt to stem unprecedented global market turmoil, the Fed cut its key federal funds lending rate by half a percentage point to 1.5 percent and also lowered its discount rate by the same amount to 1.75 percent. The ECB also cut by a half-point to 3.75 percent as did the Bank of England, taking its rate to 4.5 percent.
Posted by:ed

#1  Global rate cuts lift futures but off highs
S&P 500 futures SPc1 rose 23.20 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 climbed 139 points and Nasdaq 100 NDc1 futures gained 31 points.

The interbank cost of borrowing overnight dollars jumped again on Wednesday, indicating that credit markets remained gridlocked, according to the latest daily fixing from the British Bankers' Association, just before coordinated interest rate cuts.

Still having liquidity problems. I think the Fed's plan yesterday to provide working capital loans to businesses is the smartest thing the government has done yet to prevent the economy grinding to a halt.
Posted by: ed   2008-10-08 08:25  

00:00