Fed Cuts Rates 3/4 Point to 2.25%
The Fed’s action lowers the funds rate to 2.25 percent, the lowest since February 2005, and comes two days after the central bank announced the latest in a series of emergency measures to stem a fast-spreading global financial crisis. The Fed has now cut rates by 3 percentage points since mid-September, including 2 points since the start of the year.
In recent days, the central bank has also offered to help financial institutions as well by providing access to liquid funds. The central bank is pulling out all the stops to provide liquidity to financial markets and put a floor under an economy many analysts believe is in recession.
The Fed, fearing financial markets would freeze up and send the economy into an sharp downward spiral, has offered cash auctions and direct loans to financial institutions, opening those liquidity avenues beyond the banks that normally deal with the Fed to include other Wall Street firms.
The good thing is that the global economy is doing pretty good and especially in China where they are experiencing a boom. Our nations steel industry is actually on a rebound and looks to do pretty good.
Jerry Campbell - Muljat Group - Bellingham WA - Bellingham Real Estate