Fed pledges to act to counter market turmoil

[ozymandius]

Source: Reuters

NEW YORK (Reuters) - Federal Reserve officials on Friday said falling home prices and financial market turmoil are big risks to the U.S. economy but pledged that the central bank would not shrink from taking bold steps to support growth.

At a symposium in New York, Fed Governor Frederic Mishkin said the central bank "has been acting and will continue to act decisively" to counter rapidly deteriorating financial market conditions.

"The disruption in financial markets poses a substantial downside risk to the outlook for economic growth, and adverse economic or financial news has the potential to cause further strains," Mishkin said.

His tone echoed that of Fed Chairman Ben Bernanke, who signaled on Thursday that the Fed was ready to cut interest rates in the face of housing and credit crises that Wall Street fears could tip the United States into recession this year.

Financial markets now expect the central bank to cut benchmark borrowing rates by half a percentage point to 3.75 percent at the Fed's January 29-30 policy meeting.


Read more: http://www.reuters.com/article/ousiv/idUSN1130392420080111

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Reminder: Economic growth is limited to this map

http://www.mapquest.com/maps/map.adp?latlongtype=internal&addtohistory=&latitude=S2wQXJsZSvq2Lyj4IAjzGQ%3d%3d&longitude=Ha7wRdfpEr75OnWihzrUDg%3d%3d&name=New%20York%20Stock%20Exchange&country=US&address=20%20Broad%20St%20%23%202601&city=New%20York&state=NY&zipcode=10005&phone=212%2d656%2d5165&spurl=0&&q=New%20York%20Stock%20Exchange&qc=Stock%20%26%20Bond%20Brokers

[MercutioATC]

1. I'm glad I own physical silver.

The Fed is destroying the value of the Dollar....and our economy's medium- and long-term viability, but silver's doing great.

...and, in a few years, it may be the only thing in this country that's worth anything.

[truthisfreedom]

2. Sigh. "The end is near!"

That's what I keep seeing everywhere.

[msongs]

3. once again people who save and live responsibly are getting screwed nt

[defendandprotect]

4. The Fed is "acting" . . . Americans are paying --- !!!

[Purveyor]

6. The "Americans are praying"...is more like it. Those in the 'grip' have little else to do... eom

[defendandprotect]

7. Hard to tell if Bush will give us a new war in Iran or a new Great Depression --- ????

[Purveyor]

5. What? I thought we lived in a 'capitalist economy' and let the chips fall as they may?

"Fed" intervention? When shall we hear the Hannity/Oxy Limbaugh outcry over the gov't intervention of the 'free market', I wonder?

[CK_John]

8. IMO, all the charts and graphs for '07 need an (*) next to them and a footnote

declaring Fed interfered with the basic market principles of daily trading.

[ozone_man]

10. Just '07?

Rumors were that Alan Greenspan used to read fractals. ;)

Fine, they kept the markets up, but the dollars are worth 2/3 of what they were. So, what's the point?

[Paula Sims]

9. I wonder if Chimpy will blame the Fed for his "legacy"

the way his father blamed Greenspan for his election loss. It's always someone else's fault.