Will US cut the interest rate???

Will US cut the interest rate???
Sep 10, 2007 04:32
KATRINA Points: Join Date: Nov 29, 2004 Status: offline	Source: CNNMoney.com. Recently, US's economy and stock market have been affected by the subprime loan crisis. The investors have been hoping for weeks for cutting of the interest rate. On September 18th, the Federal Reserve will held a meeting However, after last week's disagreeable jobs report, Wall Street is more nervous than ever over the possibility that even the expected quarter-point rate cut next week may not be enough to save the economy from slipping into recession and stocks from sliding into negative territory for the year. That means the Federal Reserve might not choose to cut the interest rate. Last Friday morning, Bernanke, Federal Reserve chairman hinted that the central bank might cut rates if necessary. At present, it seems this measure may be not taken into consideration. What do you think? Will the central bank of US cut the interest rate? Why do the investors hope for interest cut? How will the stock market be affected?

Sep 10, 2007 04:32

KATRINA
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Join Date: Nov 29, 2004
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Source: CNNMoney.com.

Recently, US's economy and stock market have been affected by the subprime loan crisis. The investors have been hoping for weeks for cutting of the interest rate. On September 18th, the Federal Reserve will held a meeting However, after last week's disagreeable jobs report, Wall Street is more nervous than ever over the possibility that even the expected quarter-point rate cut next week may not be enough to save the economy from slipping into recession and stocks from sliding into negative territory for the year. That means the Federal Reserve might not choose to cut the interest rate.

Last Friday morning, Bernanke, Federal Reserve chairman hinted that the central bank might cut rates if necessary. At present, it seems this measure may be not taken into consideration.

What do you think? Will the central bank of US cut the interest rate? Why do the investors hope for interest cut? How will the stock market be affected?

Sep 11, 2007 04:52	#1
ICEBERG Points: Join Date: Sep 10, 2007 Status: Offline	Judging from the current policies adopted by the US government, I guess that the Federal Reserve will not cut the interest rate.

Sep 12, 2007 01:21

DREAMLIFE
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Join Date: Sep 5, 2007
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Yesterday, Bernanke warned that the crisis of confidence in credit market might last than any other financial shocks in the past. He says the crisis may last two years. It seems that US has met a great difficulty. Investors hope that the Federal Reserve could cut the interest rates to reduce their risks. The job report released last week attributes to the sharp drop of dollars. If the Federal Reserve decides to take this measure to cut the interest rate, more pressure will be put on the dollars. The direct of interest cut is dropping of US dollar and trigger inflation.

Almost all investors think that the Federal Reserve may be forced to cut the interest rate 25 base points or 50 points. But who knows? Guess is guess. Lets' wait and see what measures the Federal Reserve will take to save the credit market.

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