Fed Makes Emergency 0.75% Rate Cut

New York Times

In a statement, the Fed said: "The committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households."

"Moreover," the statement continued, "incoming information indicates a deepening of the housing contraction as well as some softening in labor markets."

In a related action, the Fed approved a 75 basis-point decrease in the discount rate, to 4 percent.

Within minutes after the announcement, trading in stock-index futures, which had been presaging a deep slide on American stock exchanges Tuesday, retraced much of their earlier declines, which had been driven by a second sour day in Asia and Europe.

I don't know shit about economics. Yet, considering I have been reading up on it for the last couple of years, even I know .75% is one hell of a big cut.

Still, I will not see a decrease in my mortgage payment.

Oh, and at least they no longer are acting as if their heads are stuck up their asses. But, it would have been nice if they'd have removed them back a few years ago.