Another Interest Rate Cut Impacts People In The Bluegrass

WASHINGTON (AP) - It isn't the full 1 percent interest rate cut that some observers had called for, but the Federal Reserve has cut
interest rates by three-quarters of a point.
The move takes the benchmark federal funds rate to 2 and a quarter percent, to try to stem the credit crisis that has continued to weaken the housing market and helped bring down Wall Street's Bear Stearns.
The central bank says the outlook for economic activity has weakened further and that financial markets remain under considerable stress.
It also says inflation has been elevated, but adds that pricing pressures should moderate.
Wall Street continues to send stock prices solidly higher. In the hour following the rate cut decision, the Dow was up more than 300 points.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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  • by c Location: fkt on Mar 19, 2008 at 04:16 AM
    I agree with you Early, the government needs to cut their spending & stop taxing us to death! One thing that frustrates me is that our government sends billions of our tax dollars to other countries to help them out, but doesn't do anything to help its own citizens! Congress just sent 750 million to Africa. While I am for helping others, I believe we should take care of our own first, then help others with any surplus! As Robert stated those who have investmented their money are losing their shirts while our government continues to help every country in the world EXCEPT its own citizens! This stupidity should stop! I further agree, we need to be very careful who we elect. We need someone who will HELP US, not other countries! Let other countries take care of themselves for awhile instead of the US trying to take care of them. The US needs to take care of its own citizens instead of taxing us to death to help other countries!
  • by Robert Location: Mt. Sterling on Mar 18, 2008 at 12:31 PM
    The Fed is convinced that low interbank rates will help the economy, but it is a two-edged sword. Retired folks living on fixed income find their cost-of-living rising while their savings are evaporating with little or no return. Everything costs more, but their return on savings is less. The lesson learned is "savings do not always pay." Low rates are great for the profligate spender. Should we be bailing out these foolish people who overspent their income? No one wants the dollar anymore, so oil goes over $110 per barrel. What counts is the perceived value of the stuff that we use. A strong dollar would bring more money into the US and lower the costs of energy and food. By trying to inflate our way out of debt, we are swimming in dangerous water! I hope the sharks don't eat us before the politicians figure this out.
  • by Early Cuyler Location: Squidville on Mar 18, 2008 at 10:05 AM
    I really don't think this will help one bit. Unfortunately we have been living it up on credit for the last 20 years and the time has come to pay the piper. We are going to suffer through this for about the next 7 years or so just like we did back in the late 70's. Don't fret, we will survive but we are in for a period of adjustment. Beware of who you vote for in the next several elections because they will be looking to increase taxes to get out of this over spending mess we have gotten into. It will be raise taxes vs. cutting spending on Government programs. I myself am all for cutting spending since I feel taxed to death on every level.


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