Wow! Cut the Fed Funds to 4.75% and the Discount Rates to 5.25%; a reduction of 0.50% EACH. Ben is showing Greenspan (who’s been very active promoting his new book) that he has his own moves.
"Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally."
More info to follow soon on how this will impact mortgage interest rates in the near future. Will this send inflation shock waves? Will traders seek bonds for safety?
Today, if you have a home equity line of credit, your interest rate reduced by 0.50%. Prime rate is now 7.75%.