Fed Fund & Discount rate cut .25 pt – Is it enough?

Posted By on December 11, 2007

Fed rate adjustment
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.


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Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.