Bankruptcy

Rates Cut Again

By J. Michael McBride

The rate cut of .5% to bring the bring the benchmark to 1% shows again that the Fed realizes we are in a large mess. It also is interesting to note that the Fed can only cut rates so far, until there is no more interest rate to cut!

“The Federal Reserve cut its benchmark interest rate by half a percentage point to 1 percent, matching a half-century low, in an effort to avert the worst U.S. economic downturn in the postwar era.

`Downside risks to growth remain,' the Federal Open Market Committee said today in a statement in Washington.” Here is a link to an article from Bloomberg on this topic: http://www.bloomberg.com/apps/news?pid=20601068&sid=awpa6f1vDwlg&refer=home

Michael

Full post as published by Texas Lawyer Blog on October 29, 2008 (boomark / email).