Tuesday, Sep 16, 2008
US Rates held at 2% despite anticipated cut
Bloomberg: Fed Keeps Rate at 2%, Rebuffing Call for Cut to Soothe Markets
The Federal Reserve left its main interest rate at 2 percent, rebuffing calls by some investors for a cut after Lehman Brothers Holdings Inc.'s bankruptcy shook markets worldwide. ``Downside risks to growth and the upside risk to inflation are both of significant concern,'' the Federal Open Market Committee said in a statement in Washington. ``The committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability.''
Posted by jack c @ 07:20 PM (531 views) Add Comment
7 Comments
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1. d'oh said...
Major drop in the dow the moment this was announced...been watching Bloomberg and some bloke more or less said that Paulson has said they will bail out AIG...and back up goes the Dow...if you weren't watching Bloomberg, the movement would have seemed somewhat strange...
2. fun 4 now said...
oddly ..i saw a bit also, where some senator frm alabama didnt want to bail them...looks like a rocky ride
3. d'oh said...
fun 4 now - he was the one who caused the rise. By saying he didn't want them to bail out AIG he imparted the information that they were thinking about it, first implicitly, then he was drawn out by the interviewer. He was a plant to get the information out whilst still keeping the stern tone.
4. jack c said...
More twists and turns
Sept. 16 (Bloomberg) -- The Federal Reserve is considering extending a ``loan package'' to American International Group Inc., the insurer facing a cash shortage, according to a person familiar with the negotiations.
The stance by federal regulators is a reversal from a position they held as late as last night, and people with knowledge of the talks are ``cautiously optimistic,'' said the person, who declined to be identified because negotiations are confidential.
The person gave no timetable for reaching an agreement or estimate on how much money New York-based AIG would need. New York Fed spokesman Andrew Williams declined to comment.
5. d'oh said...
By the way, the insurer for the rent on Lehman's offices in Canary Wharf - AIG
6. it_is_going_with_a_bang said...
Yeh the main factor being that in a few months it will be worth thousands less so just sit tight and wait.
7. it_is_going_with_a_bang said...
oops wrong post ... wheres that bottle gone