Thursday, April 3, 2008

The story of the Fed and the Market.

The DOW skyrocketed up last month! why?

The Federal Reserve, the bank of banks, attempted to strengthen the economy during the recession on March 18th. For the sixth time in six months, they shortened federal fund rates by three quarters to a whopping 2.25% for loans. The economy expects to see future cuts in the works.

Although this marks the largest cut in decades, the magnitude of the recession calls for a larger cut.

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