MARKETS
Investors look for grim housing numbers to lead to a cut
MarketWatch Jan 28, 08 3:48 PM CST
(Newser)
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Stocks finished in positive territory today, riding hopes that grim new housing numbers will lead the Fed to cut interest rates this week. "The main event for the week will be the Fed-rate decision on Wednesday," a strategist tells MarketWatch. The Dow was up 176.72 to 12,383.89, the Nasdaq 23.71 to 2,349.91, and the S&P 23.36 to 1,353.97.
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IMF head foresees widespread slowdown, backs US stimulus
Financial Times (UK) Jan 28, 08 10:55 AM CST
(Newser)
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With a global recession looming, the head of the IMF has warned bankers meeting in Davos, Switzerland, that lower interest rates alone won’t avert a crisis, the Financial Times reports. Dominique Strauss-Kahn called on governments to follow the US in easing fiscal policies, reversing a quarter-century of emphasis on tight spending. IMF forecasts due this week show a “serious slowdown” globally, he said.
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Fed meets Wednesday to decide if another rate cut is needed right now
Wall Street Journal Jan 24, 08 9:29 AM CST
(Newser)
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The Fed’s emergency three-quarter percentage-point cut Tuesday to the short-term interest rate was a boon to US markets, but whether the Fed will go lower in its interest-rate lambada remains to be seen. Most analysts expect a half-point cut, to 3%, at the Fed's meeting Wednesday, reports the Wall Street Journal; some see the possibility of another three-quarters.
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OPINION
Decision smacks
of panic—and worse trouble yet to come
Reuters Jan 23, 08 10:13 AM CST
(Newser)
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Yesterday's steep interest rate cut—just a week ahead of a scheduled policy meeting—made the staid Federal Reserve come across as spooked and jumpy, leaving many to wonder if the Fed knows of worse news to come, Reuters' Ros Krasny writes. The surprise .75-point cut "is a declaration of a state of emergency for the US markets and the economy," a market strategist said.
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MARKETS
Markets decline, but emergency rate cut moderates effect
MarketWatch Jan 22, 08 3:38 PM CST
(Newser)
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Stocks declined today but ended the session up from the depths of their initial plunge, as the Fed's emergency rate cut seemed to calm freaked-out investors. "This at least gets people from piling in on the short side of things," one strategist told MarketWatch. The Dow fell 128.11 to 11,971.19, the Nasdaq 47.75 to 2,292.27, and the S&P 14.69 to 1,310.50.
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Emergency three-quarter-point cut
drops prime rate to 6.5%
Bloomberg Jan 22, 08 7:32 AM CST
(Newser)
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The Federal Reserve, confronted with a world-wide sell-off triggered by fears of a US recession, cut a key interest rate by three-quarters of a percentage point today. The benchmark overnight lending rate was cut to 3.5% from 4.25%, which drops the prime rate to 6.5%. The Fed acted after Asian and European markets plunged, and the Dow was expected to drop more than 500 points at the start of trading today.
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MARKETS
Hopes for another rate cut also contributed to the rally
Wall Street Journal Jan 14, 08 3:45 PM CST
(Newser)
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Stocks surged today, propelled by hopes for an interest rate cut and expectation-busting fourth-quarter results from IBM. "The Fed has a very hard job right now, but I think the market is saying it thinks they are up to the task," a trading exec told the Wall Street Journal. The Dow jumped 171.85 to 12,778.15, the Nasdaq 38.36 to 2,478.30, and the S&P 500 15.23 to 1,416.25.
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Fed hopes to thwart troubled markets, unemployment
Wall Street Journal Jan 10, 08 1:30 PM CST
(Newser)
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The Federal Reserve may make "substantive" cuts to interest rates later this month in the face of rising economic difficulties, Ben Bernanke said today. Citing troubled financial markets and rising unemployment, the Fed chairman implied that it might drop its target short-term interest rate by .5% from 4.25%. “We stand ready to take substantive additional action as needed to support growth,” Bernanke said.
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Wall Street's top firm sees two unhappy quarters ahead
NPR Jan 10, 08 12:31 PM CST
(Newser)
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Goldman Sachs is predicting that the economy will slide into a recession this year—which has Wall Street worried, because Goldman’s been right about everything else. The investment firm forecasts a mild pullback extending over two quarters, driving up already-growing unemployment. “If we don't get job growth we don't get income growth, we don't get consumer spending, and we do get a recession,” another firm’s economist told NPR.
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Minutes from last meeting display growing concern about markets
Wall Street Journal Jan 2, 08 7:33 PM CST
(Newser)
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Fed officials will consider deeper rate cuts and a "substantial further easing of policy" if the turmoil in the credit and housing markets continues, according to minutes of last month's meeting. Officials displayed surprise at the extent of the housing crisis and acknowledged that market strains "could persist for quite some time," the Wall Street Journal reports.
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Disruptions in Nigeria, Mexico
stoke supply concerns
CNN Jan 2, 08 11:11 AM CST
(Newser)
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Crude oil prices jumped $4.02 today to push past $100 a barrel for the first time as Nigerian violence, disrupted Mexican exports, and the specter of dipping US stockpiles stoked supply fears in the face of ever-rising energy demands, CNNMoney reports. The previous record was $99.29, set November 20.
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MARKETS
Investors had hoped for half-point cut
Bloomberg Dec 11, 07 3:54 PM CST
(Newser)
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Stocks plunged today after the Fed cut a key interest rate by only a quarter-point, Bloomberg reports. Investors who had hoped for a half-point fear the smaller cut won't do enough to stave off a recession. "They're thinking that the Fed doesn't get it," said a strategist. The Dow fell 294.26 to 13,432.77, the Nasdaq 66.6 to 2,652.35, and the S&P 500 38.31 to 1,477.65.
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Federal funds figure drops for 3rd month
Wall Street Journal Dec 11, 07 1:30 PM CST
(Newser)
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The Federal Reserve cut two key interest rates at this afternoon's meeting, lopping a quarter-point off both the federal funds rate and the discount rate. The federal funds rate now stands at 4.25%, which represents a drop of 100 basis points over the past 3 months, the Wall Street Journal reports. The discount rate is now 4.75%.
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MARKETS
Mixed data, Fed anticipation stall markets
MarketWatch Dec 7, 07 3:50 PM CST
(Newser)
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The markets ended mostly even today as mixed data and anticipation of next week’s Fed meeting kept investors cautious. Given the suspense over a potential rate cut, “who is going to make a big bet now?” asked one strategist. The Dow closed up 5.69 at 13,625.58, the Nasdaq fell 2.87 to 2,706.16, and the S&P 500 dropped 2.68 to 1,504.66.
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