Quote:
The Federal Reserve unexpectedly slashed a key interest rate by a bold three-fourths of a percentage point on Tuesday, responding to a global plunge in stock markets that heightened concerns about a recession. The Fed signaled that further rate cuts were likely.
So. What next?
I would suggest a fall of the US$ against the GBPound Euro and Yen. That will lead to inflation. Wich will negate any possible benefits coming from the
Remember all those goods and raw materials coming from abroad are being paid for in $US.
Also, I think that only Japan now has a lower interest rate than the US. That is not going to make the US$ particularly attractive to foreign investors.
Coming your way soon!!! A re-raising of interest rates to try and stem the inflation wich will lead to yet more problems in the stock market.
Its not looking very pretty from where I'm sitting. but then again no-one is has distracted my attention from reality with promise of a $550 cheque in the post......