Emergency Move

22 January 2008

It has been a rough start to 2008 for the equity markets.Fasten_your_seat_belts

This morning, the US Federal Reserve announced an “inter-meeting” cut to its benchmark interest rate by 0.75 percentage points in an attempt to stop the bleeding.  The Fed has cut rates before, however, today’s action was an emergency move that is only used in very serious (and grave) situations.  The last time the Fed announced an “inter-meeting” rate cut was just days after 9/11.

If January is any indication then 2008 is going to be a rocky ride for equity markets, companies, and investor relations departments.  Fasten your seatbelts.

 

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