Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 8:45:52 PM CST

Learn about Newser Points »

« Back to the grid | Next story »

Fed Holds Line on Interest Rates; Markets Bounce

Posted Sep 16, 08 1:38 PM CDT in Business 

(Newser) – In its first unanimous interest rate decision in a year, the Federal Reserve voted today to leave its key interest rate unchanged at 2%. The decision reflects regulators' unwillingness to get even more involved in the developments roiling the financial markets, the Wall Street Journal reports. Stocks fell triple-digits on the news that an anticipated cut wouldn't materialize, but bounced back up in late afternoon trading.

The Federal Open Market Committee appeared to leave the door open to further intervention, saying it "will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability." The panel's focus now appears to be warding off inflation. "I don't think we have a generally weak economy that needs lower rates," a former Fed official told Bloomberg.

Sources: Wall Street Journal, CNN, Bloomberg

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Think 1% Is Low? He Could Go to Zero

    Oct 30, 08 9:45 AM CDT
    Think 1% Is Low? He Could Go to Zero Yesterday Ben Bernanke cut the federal funds rate to an ectomorphic 1%—but the Fed might not be done yet. More and more analysts are predicting that the central bank will have to cut rates all the way to zero if it wants to get the economy moving again. But don't get too excited, writes the New York Times: A 0% funds rate would apply only to interbank lending, and wouldn't mean free money for consumers.
    More »

  • Stocks Sink as Bernanke Hints at Rate Cut

    Oct 7, 08 1:28 PM CDT
    Stocks Sink as Bernanke Hints at Rate Cut Federal Reserve Chairman Ben Bernanke warned today that the financial crisis has not only darkened the country's current economic performance but also could prolong the pain. The Fed chief's gloomy assessment appeared to hint of an interest rate cut on or before the Fed’s next meeting later this month. Despite the sign of a possible rate cut, the Dow was down around 300 points midday.
    More »

  • Fed Weighs Emergency Rate Cut

    Oct 2, 08 9:28 AM CDT
    Fed Weighs Emergency Rate Cut Mounting fears that the credit crisis and continually worsening economic data will push a stagnant US economy into a severe recession has spurred the Federal Reserve to consider cutting interest rates from their current 2%, the Wall Street Journal reports. Even if the House follows the Senate in passing the $700 billion bailout, some action is likely. More »

  • Hank and Ben: Time to Play Offense

    Sep 17, 08 7:15 AM CDT
    Hank and Ben: Time to Play Offense If you'd told economists 18 months ago what lay ahead in the financial industry, predictions for the American economy would be dire. The fact that things aren't totally awful—we still haven't entered into a recession—is testament to the good defense of Hank Paulson and Ben Bernanke. What they aren't doing, writes David Leonhardt in the New York Times, is fixing the underlying problems that led to Lehman's failure and AIG's bailout.
    More »

  • Feds, Banks Seek Lehman Deal by Tonight

    Sep 13, 08 2:05 PM CDT
    Feds, Banks Seek Lehman Deal by Tonight Washington and Wall Street continued talks today aimed at solving the Lehman Brothers crisis as early as tonight, the Wall Street Journal reports. Federal Reserve officials still refuse to approve a bailout like the one that enabled JP Morgan to acquire Bear Stearns this summer—but possible buyers like Bank of America and Barclays are balking at Lehman's bad assets, which have so far hindered a deal. More »

A Wall St. street sign is seen near the New York Stock Exchange Monday, Sept. 15, 2008 in New York. A stunning reshaping of the Wall Street landscape sent stocks down sharply Monday, but the pullback...   (AP Photo/Jin Lee)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 6)

Tags

Federal Reserve • recession • Ben Bernanke • Lehman Brothers • interest rate • Fed funds rate • discount rate


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »