The Federal Reserve reduced the basic rate in the country by 50 basis points to 1 percent, which is the second reduction last month. Expectations were for the reduction of interest within 0,5-1%.
“The rate of economic growth appears to be delayed significantly because of decreased consumer spending. Investment in business equipment and industrial production weakened in recent months and is slowing economic growth in many foreign economies threatens U.S. exports. Additionally, market turbulentsii likely will reduce costs, partly due to reduction in the ability of households and businesses to obtain loans, “says the official release of the Fed.
“Due to declining prices of fuel and other commodity assets and expectations due to weakening economic activity FOMC expects inflationary pressures to fail in the coming quarters to levels corresponding to price stability”, says in the message.
“Recent actions, including today’s reduction in the basic rate, coordinated reductions of interest rates by central banks, additional measures to enhance liquidity and public steps to strengthen the financial system should improve credit conditions and regaining moderate economic growth. However, risks in terms of growth there. FOMC will monitor economic and financial indicators closely and will do whatever is necessary to support sustained economic growth and price stability.
The U.S. market reacted to the cancellation of the original rastove to 20:25 local time DJIA reported a decrease of 0,74%, Nasdaq fell by 0.05 percent and S & P 500 reported drop of 0.7 percent.
Today China’s central bank divest the basic interest rate to 6.66 from 6.93 previously.
Norway’s central bank also lowered the basic interest of the country - by 50 basis points to 4.75 after earlier for three years led to higher policy rates.
Next week is expected the ECB to lower interest rates by half a percentage point to 3.25 percent.
In early October the ECB lowered interest rates by 50 basis points to 3.75 percent in coordinated shares together with several other central banks.
According to an anonymous source Reuters reduction of the base rate will be by the Japanese central bank.
Australia with the weak economic growth of eight years Bernanke: Inflation will be reduced Rescue plan for the economy of Australia Bank for International Settlements: Economic growth must be sacrificed in the fight against inflation The data on employment pressed U.S. state indices, the serial drama data on the labor market in the U.S. Central bankers: Asia deal with crisis Bank-to-bank lending eases Strong data on the labour market in Germany U.S. shares erased their initial gains. The outlook for long-term credit rating of Russia is “negative” and Gold-currency reserves of Russia decreased by 50 billion dollars Exchanges in Asia red again. New bankruptcy among Japanese companies in construction sector and lower ratings representatives of regional economy U.S. shares of the green, S&P 500 by 10 percent weekly rise Lending rate ticks lower Euro weakens on rate cut evidence Credit markets ease slightly After rate cuts: The Fed’s new ball game Fifth consecutive decline for exchanges in Asia Red start of the month for Asian markets Mass panic scope and exchanges in Eastern Europe The quality of loans in Eastern Europe deteriorate Inflation in Europe at lower level than nine months. Europe is in recession officially G-20 will decide on coordinated stimulate the world economy Dow Jones wiped their initial gains Another bank failure in U.S. The Bank Silver State closed its banking business Merrill Lynch strongly disappointed investors off assets for $ 9.4 billion dollars India unveils economic boost plan Six-year peak of inflation in Slovenia Price of oil will not stop - marks a record after record The price of oil to a record for the last 17 years fall Credit market pressure eases The euro board to new peaks Oil ended the week with a drop of over 11 percent Auctions of stock and commodity markets have supported gold Oil remained at low levels to the limit of 100 dollars Tips for growth in economy High jump in the markets in the U.S. with substantial growth Again bank failure in U.S. World Bank gives USD 100 billion to developing markets McCann against Obama - how will affect the economy Shares of the week - storms Wells Fargo & Co. Housing in Moscow more expensive by over 25% in first half of year Can my pension be reduced? Bonds soar on Fed decision Middle East oil fell to 122.10 dollars for a barrel Cheap money: The Fed cuts and you Obama with a plan to create 2.5 million jobs by 2011 Consecutive decline in U.S. stock, S&P 500 also enters in Bear Market New tumbled in sales of cars in Europe
Tags: assets, banks, basic rate, economy, federal reserve, fuel
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