2008-01-30 14:30 ET Dow +11.12 Dow Close 12595.41 Nasdaq +20.06 Nasdaq Close 2378.16 S&P +12.34 S&P Close 1374.84 NYAdv 1391 NYDec 1702 NQAdv 1385 NQDec 1565
[BRIEFING.COM] The initial reaction to the Fed's decision to cut rates by 50 basis points has been positive. The Dow has gained roughly 150 points from pre-announcement levels.
The Fed cited stresses in financial markets and the tightening of credit for some businesses and households as reasons for the 50 basis point cut. The fed also noted deepening of the housing contraction and softening in the labor markets.
The Fed said it expects inflation to moderate, but it continues to monitor inflation "carefully." The Fed noted that its recent actions should help promote moderate growth, but downside risks remain.
The emphasis on downside risks to the economy compared to inflation risks indicates the Fed is open to further rate cuts.
Of note, this vote was not unanimous. Richard W. Fisher of Dallas voted for no change in the fed funds rate.
TZL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
