Fed Cuts Key Rates by .25%

by Alex Stenback on December 11, 2007

Fed website swamped, but direct Link to Statement works

A quarter point reduction in the Fed Funds, and Discount Rate.

At first blush, this is a pretty bearish statement, and looks like they are clearly leaving the door open for more cuts.  Mortgage bonds should rally on this news.  Stocks may have wanted a bigger cut.

Below is a screenshot of full statement, click for bigger.

1211_fed_statement

{ 1 comment… read it below or add one }

Metrowest Massachusetts Real Estate December 11, 2007 at 8:44 pm

Hi Todd – Hope you are well. I am surprised the cut was only a quarter point. It sure looks like Wall St was surprised as well. I gree that the fed has more cuts in store. I would not be surprised if they made an unannounced cut at some point over the next month.

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