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Fed Cuts Rates .75% - Running out of Ammo?

posted 203 weeks ago on Blown Mortgage

The Fed cut interest rates to 2.25%, a nice 75 basis points whack to try to fend off long-lasting effects of a recession and another round of the credit freeze. The question stars to become - does the Fed have enough ammo (or the right kind of ammo)? And I think the answer has been well addressed across the blogosphere, and that answer is "No." From Market Watch on the Fed Rate Cut: The Fed action takes the federal funds rate target down to 2.25%, the lowest since December 2004 The Fed said the size of the rate cut was enough to promote growth. "Today's policy action, combined with those taken earlier, including measures to foster market liquidity, should help to promote moderate growth over time and to mitigate the risks to economic activity," the Fed said.
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