Posted By RichC on December 11, 2007
Although the 2:15 PM Federal Reserve Funds Rate and Discount Rate was exactly what most financial gurus expected — cut .25 point — the markets were hoping for more aggressive action in order to protect the banking industry and U.S. economy. Many believed that a .50 point cut was necessary, although the governors decided 9 to 1 to go with the .25 point cut. Markets reacted coming off of intra-day highs and quickly sold off. DJIA closed at 13,432.60 down 295 points.