Federal Reserve policymakers yesterday (Wednesday) reduced the benchmark Federal Funds rate to 1.0%, an aggressive half-percentage-point cut that central bank Chairman Ben S. Bernanke’s latest attempt to keep the widening financial crisis from tipping the world into a global recession.
The U.S. Federal Reserve is likely to cut rates tomorrow (Wednesday), possibly in conjunction with central bank counterparts in Europe, as fears of a global recession have intensified. However, the Fed has little room to maneuver as its benchmark Federal Funds rate is already at 2% and analysts remain skeptical that reducing it any further keep the United States from sliding into a prolonged recession.
Retail sales actually went up last month – how is that even possible?…The Beige Book says the U.S. economy is ‘generally weak’… The sky’s the limit for electronic money – but not so for real wealth…America’s money is snapping back… Calling into question the U.S.’s car culture…the next big thing in the search for an energy alternative…and more!
In the currency market, the dollar rallied against the euro. Late Thursday, the euro was trading at $1.5421 vs. $1.5548 on Wednesday. The buck was supported by better-than-expected retail sales, which boosted expectations for a Fed rate hike.
We aren’t scared of the peaks – what we are nervous about are the valleys…all the Fed’s hard work can be undone by a single day of trading… The global oil crunch…consumer confidence is out of gas as well – thank goodness for those rebate checks… The anniversary of the “Esperanto Money”…in central banking, the consequence of inertia and inactivity is almost always salutary…and more!
Retailers are trying to lure shoppers helped by stimulus checks, reports AP.
You may have to wait until May to see your economic stimulus check, but some retailers already have their sights set on how you will spend it.
Both Kroger Co., one of the country’s largest grocers, and department store operator Sears Holdings Corp. are already offering discounts and freebies to consumers who turn the rebate checks into gift cards.
Consumers feeling all the pain of 1982… Bernanke, Paulson prescribe “Doritos” cure…IEA slashes oil demand forecast… Why it still won’t mean a return to $80 oil…As GE goes, so goes the market… What Wall Street is overlooking…A bold gold forecast…and the reason to take it with a grain of salt…Are we in a commodities bubble? Let the debate begin!