Previous Thread
Next Thread
Print Thread
US Central Bank Lowers Interest Rate #250085
09/18/07 09:47 PM
09/18/07 09:47 PM
Joined: Nov 2002
Posts: 2,533
Short Offline OP
Short  Offline OP
US Central Bank Cuts Key Interest Rate by Bold Half-Percentage Point
By Cindy Saine
18 September 2007

The U.S. Federal Reserve Tuesday cut key short-term interest rates by a half percentage point in an aggressive move to protect the economy from a housing slump and the related mortgage market turbulence. VOA's Cindy Saine reports from Washington.

The half percentage point cut in the interest rates that banks charge each other for overnight loans was bigger than the quarter-point cut many experts had anticipated, taking the federal funds rate down to 4.75 percent.

Alan Viard, a senior economist at the Federal Reserve Bank of Dallas and is now a resident scholar with the American Enterprise Institute, said he was surprised by the half-point reduction. "I think what the Fed has decided to do is just to take very aggressive action. And specifically to respond to what's going on in the financial markets," he said.

The New York stock market responded enthusiastically to the rate cut, with the Dow Jones industrial average rising more than 330 points by the end of the day Tuesday.

This was the first federal funds rate cut in more than four years. It is also the first for Fed Chairman Ben Bernanke, who is facing a major test with financial markets in turmoil. The Federal Reserve has been slowly raising interest rates over the past four years to fight off the threat of inflation.

Robert Scott, Director of the Washington-based International Programs at the Economic Policy Institute, said the Fed's bold rate cut reflects serious concerns. "Well I think the Fed is more worried than some have expected about the mortgage crisis and its likely effect on consumer spending. I think that crisis is going to get a lot worse before it gets better, and I think the Fed is well aware of this," he said.

Scott said he expects there may be more rate cuts to come, and he likened the U.S. economy to an aircraft carrier that is very hard to turn around once it is going in a certain direction.

The Fed's announcement came just hours after the release of a report from an online real estate company that said an increasing number of Americans are at risk of losing their homes to foreclosure.

The U.S. housing market has been affected by the rising number of people unable to pay off so-called sub-prime mortgages given to borrowers with weak credit.

Live and let live
Re: US Central Bank Lowers Interest Rate [Re: Short] #250104
09/19/07 02:20 AM
09/19/07 02:20 AM
Joined: Nov 2000
Posts: 8,880
seashell Offline
seashell  Offline
Not only that, Cdn and US $ are practically at par. Belize better get ready for even more Canadians arriving!

I know I'm pretty excited about it. It wasn't all that long ago I was buying US money for approx. $1.60 Cdn for $1.00 US. That sure made my BZ vacations pricey! But I loved it so, what could I do?? smile

A fish and a bird can fall in love, but where will they build their nest?

Re: US Central Bank Lowers Interest Rate [Re: seashell] #250115
09/19/07 09:10 AM
09/19/07 09:10 AM
Joined: Nov 2006
Posts: 1,094
Danny2 Offline
Danny2  Offline
Just the beginning.

Re: US Central Bank Lowers Interest Rate [Re: Danny2] #250117
09/19/07 09:19 AM
09/19/07 09:19 AM
Joined: Nov 2006
Posts: 1,094
Danny2 Offline
Danny2  Offline
I watched Greenspan on the news last night talking about the problem was going to be that in 2006 the budget would be flush; we would have so much money the government would have to buy private wealth. He never considered using the surplus money to provide health care or other needy services to the homeless or anything beneficial to mankind. This whole scenario reminds me of the old 50's tv show "The Millionaire." Everybody was waiting for the knock on the door from Michael Anthony (we're still waiting) and his check for a million dollars that you had to spend within one year and not tell anybody where you got the money and give back what you didn't spend. It was just crazy; and , that's what's going in this world. I got a good idea, let's spend the money on a war with Iran.

Re: US Central Bank Lowers Interest Rate [Re: Danny2] #250122
09/19/07 09:41 AM
09/19/07 09:41 AM
Joined: May 2007
Posts: 4,701
Pismo Beach
Rykat Offline
Rykat  Offline
ah, now you're on track(don't forget Syria)! smirk

Re: US Central Bank Lowers Interest Rate [Re: Rykat] #250128
09/19/07 10:50 AM
09/19/07 10:50 AM
Joined: Jan 2003
Posts: 7,479
SimonB Offline

SimonB  Offline
They might want to pay down that $9,000,461,329,297.77 in debt.


Re: US Central Bank Lowers Interest Rate [Re: SimonB] #250149
09/19/07 12:50 PM
09/19/07 12:50 PM
Joined: Nov 2002
Posts: 3,484
San Pedro
Sir Isaac Newton Offline
Sir Isaac Newton  Offline
Smart time to buy property! smile

Check out my site:

Portofino Resort- Now with a new BEACH BAR!!
Click for excellent scuba lessons with Elbert Greer!
Chaa Creek is an award-winning luxury Belize Resort, rated as one of the worlds best Eco Lodges. We are a pioneer in adventure travel to Belize since 1981!
Maruba Beach Klub and Spa is the premiere Secret Beach spa and restaurant located on the crystal blue waters of the Caribbean Sea at the center of Secret Beach, Belize
First Class Accommodations for the Budget Traveler
First Class Accommodations for the Budget Traveler

Things to do
Specials & Events
SPTB Calendar of Events

Daily News
Daily Weather

Classified Ads
San Pedro Sun
Ambergris Today
SP Town Council
Channel 7
Channel 5
Love FM
The Reporter
TV Newscasts
Radio Stations

Click for our
Search thousands of Belizean-only websites
To Get Your Questions Answered

Event Guides
Event Calendar
Specials & Events
Things to Do
Cayo Event Calendar

San Pedro Scoop!
Tia Chocolate
My Beautiful Belize
I-Travel Belize
Belize Adventure
Belize Hub
Romantic Travel
Belize Happy Adventures
Conch Creative
Caribbean Culture & Lifestyle
More Blogs...
Search thousands of Belizean-only websites
White Sands Dive Shop - 5 Star PADI Dive Facility - Daily diving, SCUBA instruction and Snorkeling
Caribbean Inspired All Natural Condiments & Spice Blends, Over 100 are Gluten Free!
Click for the Thrifty Dollar Golf Club Rental website!
Click for Ian Anderson's Caves Branch, Welcome to a World of Adventure
Lil Alphonse has snorkel equipment to fit anyone as well as Marine Park Tickets and flotation devices to assist those not as experienced.
Coastal Xpress offers a daily scheduled ferry run to most resorts, restaurants and private piers on the island of Anbergris Caye. We also offer  private and charter water taxi service.
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
Cayo Espanto
Click for Cayo Espanto, and have your own private island
More Links
Click for exciting and adventurous tours of Belize with Katie Valk!
ShoutChat Box
Who's Online Now
0 registered members (), 102 guests, and 0 spiders.
Key: Admin, Global Mod, Mod
Forum Statistics
Most Online7,413
Nov 7th, 2021 HELP! Visitor Center Goods & Services San Pedro Town Message Board Lodging Diving Fishing Things to Do History Maps Phonebook Belize Business Directory Picture of the Day

The opinions and views expressed on this board are the subjective opinions of Ambergris Caye Message Board members
and not of the Ambergris Caye Message Board its affiliates, or its employees.

Powered by UBB.threads™ PHP Forum Software 7.7.1