Marketwatch | Fed lowers rate by .75% to 1%


A senior Fed official told reporters that the Fed has switched tactics and will now focus on aiding credit.

The Fed has already targeted a few debt classes for assistance. The senior officials said that other classes, including below triple-AAA quality debt, may be purchased.

The official said the program was not quantitative easing as practiced by Japan in the 1990s.

While Japan simply wanted to increase the quantity of money, the Fed wants to focus on the asset side of the balance sheet.

The moves are just about as aggressive as the central bank could be on monetary policy.

The Fed gave clear signals that it has moved on to other measures beyond setting interest rates in its fight to keep the economy rolling.

Josh Shapiro, chief economist at MFR Inc., said the Fed is “petrified” about the economic outlook.

But the senior Fed official said that economists at the central bank generally are in agreement with Wall Street economists about the duration and depth of the recession.

After two quarters of very weak growth, the economy should start a slow recovery after mid-year, the official said.

via Fed slashes rates, vows to keep them low for some time – MarketWatch .

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Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at: http://benchilibowl.wordpress.com http://zyaada.mp

Posted on December 17, 2008, in Financial Markets, India, US and tagged , , , . Bookmark the permalink. Leave a comment.

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