As I kept saying it is not the percentage it's the wording of Mr Greenspan's speech that will attract most investors' attention...here is the news, comments later...add yours in the mean time
Riz
WASHINGTON (Reuters) - The Federal Reserve on Tuesday cut U.S. interest rates by half a percentage point, the third such reduction this year, and signaled it was ready to do more if needed to revitalize the economy.
The move followed two rapid-fire reductions in January and dropped the bellwether federal funds overnight bank lending rate to 5 percent -- its lowest level since mid-1999 -- as Fed policymakers continued an aggressive monetary easing campaign.
The Fed's decision to opt for a half-percentage point cut, instead of the more dramatic three-quarters of a percentage point reduction financial markets had hoped for, may disappoint investors.
To underscore its determination to keep recession risks at bay, the powerful central bank also cut the discount rate -- charged on direct Fed loans to commercial banks -- by a half point to 4.5 percent.
In a detailed statement issued at the conclusion of the Federal Open Market Committee meeting, the Fed said it still sees excessive weakness as the main threat to the U.S. economy, clearly implying it stands ready to cut rates again if necessary to keep the record expansion in the world's largest economy from stalling out.
Riz
WASHINGTON (Reuters) - The Federal Reserve on Tuesday cut U.S. interest rates by half a percentage point, the third such reduction this year, and signaled it was ready to do more if needed to revitalize the economy.
The move followed two rapid-fire reductions in January and dropped the bellwether federal funds overnight bank lending rate to 5 percent -- its lowest level since mid-1999 -- as Fed policymakers continued an aggressive monetary easing campaign.
The Fed's decision to opt for a half-percentage point cut, instead of the more dramatic three-quarters of a percentage point reduction financial markets had hoped for, may disappoint investors.
To underscore its determination to keep recession risks at bay, the powerful central bank also cut the discount rate -- charged on direct Fed loans to commercial banks -- by a half point to 4.5 percent.
In a detailed statement issued at the conclusion of the Federal Open Market Committee meeting, the Fed said it still sees excessive weakness as the main threat to the U.S. economy, clearly implying it stands ready to cut rates again if necessary to keep the record expansion in the world's largest economy from stalling out.
