Fed may cut rates 'substantially'
The BBC says minutes of the December 11th meeting of The Federal Reserve "say the credit crunch could lead to a situation that will require "substantial" rate cuts."
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The stock market (DJIA) fell over 220 points, as Gold went to a new all time closing high and oil touched $100 a barrel. Bullish commodity investors see the FED abandoning the fight against inflation and going all out to fight the liquidity crisis brought on by the sub prime mess.
In addition, Yahoo announces U.S. Manufacturing Sector Contracts
The U.S. manufacturing economy unexpectedly contracted in December, ending a streak of 10 consecutive months of growth and sinking to its lowest point in almost five years, a private research group said Wednesday. The decline suggests that the overall economy may be weakening faster than some economists predicted.The FED has placed itself in a difficult position, fight inflation and ruin the economy or abandon the dollar with lower interest rates, stoking inflation, and ruin the economy.
What a pickle for the FED and our fiat currency!
Posted by movermike on
Wednesday January 2, 2008 at 8:36pm
