Post by Rick Warder on Dec 19, 2005 17:25:03 GMT -5
NEW YORK, NY - In an effort to stem further deterioration in the economy, Fed Chairman Ben Bernanke slashed interest rates another 50 basis points, bringing the discount funds rate to 3.5% from 4%, its lowest level in four years. President Rick Warder and Wall Street cheered the move, saying that the economy was being given a "reprieve" following former Fed Chairman Alan Greenspan's interest rate tightening spree between 2003-2005, in which for every quarter, every year, the rate was hiked by 25 basis points.
"This is a sign that the economy is being put on the path to growth," said Secretary of the Treasury Phil Kurtzner. "An interest rate cut will further spur investment. I am not sure whether rates will go lower, but 3.5% is better than 4.5%" The discount funds rate has been cut by 1% over half a year.
"This is a sign that the economy is being put on the path to growth," said Secretary of the Treasury Phil Kurtzner. "An interest rate cut will further spur investment. I am not sure whether rates will go lower, but 3.5% is better than 4.5%" The discount funds rate has been cut by 1% over half a year.