Fed Cuts Rates by Unprecendented .75%

Early Tuesday, January 22nd, the Federal Reserve announced that it was going to cut rates another .75%, the largest cut in over 20 years. Foreign exchange markets were hurting bad recently and some Asian exchanges lost 9%. Likewise, there was some speculation that the Dow would open Tuesday morning down by as much as 575 points. Although the Dow was down about 350 points when the markets opened Tuesday, by close it had fallen another 100 to be down 400 points by the closing bell on Tuesday.

This news indicates that the Fed is much more concerned that we’re headed into a recession than it is about rising inflation. That’s good news for people looking to purchase or refinance, but bad news for just about everyone else.

Related Articles:

Another Recent Fed Rate Cut and The Outlook on Mortgage Rates
Yet Another Interest Rate Cut by the Fed - Down .5%
CPI Released, Meets Expectations
Mortgage News - AM Edition - Monday, May 26^th, 2008
What's Happening in Mortgages - AM Edition - Friday, February 01^st, 2008