| Fed Takes Another Quarter |
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Andrew
Admin
Cash: $ 467.10
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Joined: 02 Nov 2003
Location: Texas
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| Fed Takes Another Quarter |
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Fed Pushes Rate Up Quarter of a Point
WASHINGTON (AP) - The Federal Reserve boosted a key short-term interest rate by a quarter-point on Tuesday as the central bank continued its campaign to keep inflation under control.
Fed Chairman Alan Greenspan and his colleagues on the Federal Open Market Committee, the panel that sets interest rates, boosted the target for the federal funds rate to 1.50 percent.
The funds rate, the interest that banks charge each, had been at a 46-year low of 1 percent just six weeks ago when the Fed raised it to 1.25 percent, the first increase in four years.
The Fed action this week had been expected as analysts predicted the central bank would continue with its campaign to raise rates even in the face of last Friday's report that showed job creation slowed to a near-standstill last month.
Analysts said that if the Fed had decided to forgo its widely expected rate hike it would have raised concerns in financial markets that the central bank was worried that the current economic slowdown, which Greenspan has termed a "soft patch," was threatening to become more severe.
By MARTIN CRUTSINGER
http://apnews.myway.com/article/20040810/D84CH34G0.html
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Tue Aug 10, 2004 5:50 pm |
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nomav6
Full Member
Cash: $ 6.14
Posts: 65
Joined: 27 Jun 2004
Location: kentucky
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 almost all the stocks in my portfolio went up today, due to this
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Tue Aug 10, 2004 7:06 pm |
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Andrew
Admin
Cash: $ 467.10
Posts: 1717
Joined: 02 Nov 2003
Location: Texas
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Congrats on your stocks!
The market seems to be responding quite favorably to this move. A failure to hike the rate at this point would have indicated that the Fed felt the economy was too soft to make such a move, so this is, in effect, a positive economic indicator.
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Tue Aug 10, 2004 7:32 pm |
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nomav6
Full Member
Cash: $ 6.14
Posts: 65
Joined: 27 Jun 2004
Location: kentucky
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thank you, I'm keeping my fingers crossed hoping that its not just a short burst and then a decline, I still need to make up for the chances that I took on some of the Airline companies, which I still hold and will continue to hold, because I still have faith but I do have some other low risk stocks so Im still safe
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Tue Aug 10, 2004 8:20 pm |
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