MARKETS
Stocks end down thanks to nervous investors
Wall Street Journal Apr 30, 08 3:38 PM CDT
(Newser)
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News of today's Fed interest-rate cut swept away a market rally, and stocks ended down. Language in the Fed statement indicating that further trims were unlikely spooked investors, the Wall Street Journal reports, though that news was expected. The Dow ended down 11.81 to 12,820.13; the Nasdaq was off 13.30 to 2,412.80; and the S&P down 5.35 to 1,385.59.
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UPDATED
Markets expect cut to be body's last for some time
Wall Street Journal Apr 30, 08 1:31 PM CDT
(Newser)
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As expected, the Federal Reserve cut a key US interest rate today, the Wall Street Journal reports, trimming its overnight rate a quarter-point to 2%. Seven consecutive cuts have the rate down from 5.25% in September as the Fed attempts to keep the economy from stalling under credit woes. "Economic activity remains weak," today's statement says, and markets "remain under considerable stress."
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Experts expect a last cut to 2% before the central bank stops and waits
Wall Street Journal Apr 24, 08 10:05 AM CDT
(Newser)
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The Federal Reserve may be ready to cool its torrid rate-cutting after a likely .25% percentage point cut at its meeting next week, the Wall Street Journal reports. Futures markets are betting Chairman Ben Bernanke is unlikely to rest just yet, with little change in the month-to-month economic picture, but will pause after that to assess the cuts' effect and avoid stoking inflation.
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Bank votes quarter-point cut to 5% as downward pressure mounts
Bloomberg Apr 10, 08 7:35 AM CDT
(Newser)
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The Bank of England today cut its benchmark interest rate 25 basis points to 5%, reports Bloomberg, hoping to keep the nation’s economy out of recession. Despite the third cut since December, BoE’s rate remains the highest among the Group of Seven industrialized nations; policymakers have drawn fire for being “behind the curve” in responding to the credit crisis.
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But admits economy could contract, possibility of recession
Wall Street Journal Apr 2, 08 10:24 AM CDT
(Newser)
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Ben Bernanke for the first time acknowledged the possibility of a US recession, but he also voiced optimism that “much” of the adjustment period was over, the Wall Street Journal reports. His testimony before Congress seemed to suggest an end to aggressive stimulus measures—noting that rates had already been cut “substantially” and inflation was still a “source of concern.”
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Iceland frets about collapse as interest rates spike to 15%
Financial Times (UK) Mar 26, 08 9:10 AM CDT
(Newser)
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The global credit crisis has spelled disaster for banks and hedge funds, but now worry is mounting that an entire country could go under. Yesterday the central bank of Iceland was forced to raise its interest rate 1.25 percentage points to 15% at an emergency meeting, reports the Financial Times . The surprise move was a desperate effort to curb runaway inflation and prop up the krona, a currency in free fall.
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Borrowers, exporters stand to gain, but critics find move 'self-defeating'
Washington Post Mar 19, 08 10:27 AM CDT
(Newser)
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The Federal Reserve's latest rate cut might boost the economy with cheaper credit, but economists worry a freed inflation genie could be behind any magic, the Washington Post reports. Commodity prices rose to record levels in expectation that the rate cut would keep demand high, and the price hikes are liable to soon filter down to the checkout line.
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MARKETS
Worries lessen that investment banks are doomed
Bloomberg Mar 18, 08 3:47 PM CDT
(Newser)
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Stocks blasted off today, with the Dow up more than 400 points after the Fed rate cut and a rally by investment bank stocks. "The run on the investment banks would appear to be over,'' a strategist told Bloomberg. The Dow ended up 420.41 at 12,392.66, the Nasdaq up 91.25 at 2,268.26, and the S&P 500 up 54.14 at 1,330.71.
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updated
But Wall Street had hoped for more
Wall Street Journal Mar 18, 08 1:37 PM CDT
(Newser)
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The Federal Reserve today cut the federal funds rate by ¾ of a percentage point, from 3% to 2.25%, disappointing many investors who were hoping for a cut of a full point, reports the Wall Street Journal . The Fed voted 8-2 for the rate cut. "Recent information indicates that the outlook for economic activity has weakened further," the central bank said in a statement, adding it will take further action when needed.
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Scope 'far exceeds'
that of previous crises
Bloomberg Mar 18, 08 10:35 AM CDT
(Newser)
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Ben Bernanke has the savvy to inject enough liquidity into the US economy to push it through the current credit crisis, says a leading economist who advised the Fed chief's MIT doctoral thesis. “The Fed will get on top of this,” said Stanley Fischer, ahead of this afternoon's meeting in which the board was expected to announce a rate cut of up to 1%.
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Latest step to stem worsening credit crisis and bolster panicky markets
Associated Press Mar 16, 08 7:21 PM CDT
(Newser)
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The Federal Reserve raced to buck up an anxious financial sector today by cutting its discount rate to banks by a quarter point, to 3.25%, the AP reports. It also created a new lending facility to aid investment banks with short-term loans. The moves are "designed to bolster market liquidity and promote orderly market functioning," the Fed said. "Liquid well-functioning markets are essential for the promotion of economic growth."
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WSJ poll sees big shift toward the negative from survey five weeks ago
Wall Street Journal Mar 13, 08 5:00 PM CDT
(Newser)
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A cascade of bleak financial news has convinced most economists in a Wall Street Journal poll that the US is already in a recession. The results are markedly more negative than a similar survey only five weeks ago, and much of the foul mood can be traced to last week’s dismal employment report. “The evidence is now beyond a reasonable doubt,” said one. Of the 51 economists polled, 71% said recession had arrived.
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Slumping US economy, dollar sends investors to shiny commodity
BBC Mar 13, 08 1:03 PM CDT
(Newser)
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Gold hit $1,000 per ounce for the first time today, the BBC reports, as investors flock to commodities. The precious metal is already up 20% on the year. “Every bit of bad US economic data boosts gold in two ways,” said Fortis Bank, both because gold is a “safe haven” asset and because the dollar drops on expectations of US interest-rate cuts.
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