Feds slashes federal funds rate a historical .75 point!
Today will go down in history as a day the feds made a huge move by slicing the federal funds rate a whopping .75% to try and put some stimulus back into the American economy. Of course some wonder: too little too late? If you were watching your financial portfolios today you were no doubt pleased by the news especially after waking up to a 450 point drop on the Dow.
Many investors were panicking especially in light of the major worldwide market sell 0ffs. Some indexes fell so much people wonder how long it will take to return to their highs. The question remains if this fed rate cut will help our economy and keep our economy out of an outright recession. Job losses are happening across the country as well as a major housing slump resulting in a very different financial landscape from where we were just 1 or 2 years ago.
As goes housing – so goes the rest of the economy – people could argue. It seems this thought plays out in 2007/2008. With the housing industry in a major slump we have lot’s of unemployed construction workers and that issues spreads over the entire employment food chain.
Take cover… things may be rocky for some time to come.