Fed slashes rates in shock move

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Fed slashes rates in shock move
The US Federal Reserve has cut interest rates to 3.5%, a shock three-quarters of a percentage point reduction. Aimed at staving off a US recession, the move failed to calm investors, with shares continuing to fall sharply as Wall Street opened for Tuesday trading. The Fed, the US central bank, said latest figures indicated a deepening of the country's housing market slump and increased unemployment levels. One analyst said the Fed was "obviously panicked" by the threat of recession. The Fed's interest move came as a complete surprise, as it was taken outside its timetabled rate-setting Open Market Committee meetings.
We’ve lost 8 billion so far this year, markets hate surprise moves and this one by the Fed freaked the hell out of everyone, at one point the Dow Jones lost 300 points before ‘recovering’ to a 177 point loss. Bernanke has been telling everyone who would listen that things were worse from the sub prime credit orgy and no one wanted to listen. The Fed’s move did give life back to the French and British market’s, but those may evaporate when those markets see that the Fed’s call has done very little to turn the American market, give this till the end of the week to see if the tide turns, if it doesn’t, schedule in the economic apocalypse.