Fed cuts rates by 0.50% - Aussie Stock Forums

Results 1 to 7 of 7
  1. #1
    vishalt's Avatar
    Join Date
    Mar 2007
    Sydney, Australia
    Blog Entries

    Default Fed cuts rates by 0.50%

    Sept. 18 (Bloomberg) -- The Federal Reserve lowered its benchmark interest rate by a half point to 4.75 percent, the first cut in four years, hoping to keep the U.S. from sinking into a recession sparked by spreading housing-market fallout.
    Oh my god, US stocks are SOARING, I think this rally is going to be short term, the US dollar is collapsing below 16 year highs now, gold/oil/inflation are going to SURGE.

    Could this get any more interesting!!?!?
    Check out my sharetrading blog @ www.allords.blogspot.com

  2. #2

    Default Re: Fed cuts rates by 1/2%

    Market is soaring, could be start of a bigger move lasting a few weeks.
    Dollar is plummeting, could be the start of the last major move down before a major reversal starts.

    Fed trying to bring back the bubble but will fail misreably IMO in the longer term :-)

  3. #3
    Printing My Own Money chops_a_must's Avatar
    Join Date
    Nov 2006
    Close to the low flying magpie geese

    Default Re: Fed cuts rates by 1/2%


    Looks as if the USD is going to set a capitulation low sometime soon, which is probably needed...
    Attached Images
    Up the Rats!!!!

  4. #4
    Rotaredom wayneL's Avatar
    Join Date
    Jul 2004

    Default Re: Fed cuts rates by 1/2%

    Just an observation: There has been very little movement at the long end of the yield curve as a result of the cut today. In other words, so far no likely affect on borrowing rates.

  5. #5
    noirua's Avatar
    Join Date
    Feb 2006
    Kent, England
    Blog Entries

    Default Re: Fed cuts rates by 1/2%

    At least the world can see that the Fed is willing to forget the inflation data in favour of helping US growth. Other countries may well fall into line in the coming months, and perhaps show that they can take a more liberal look in the mirror.

    Australia needs to take the lead and slam interests rates back to 5% and see the prospects of higher profits from miners and other commodities.

  6. #6

    Default Re: Fed cuts rates by 1/2%

    So, correct me if I'm wrong about these two possible effects of Bernanke's Bouncedown...

    (a) Given that there will now be a significant disparity between US and Oz interest rates and Australias supposedly strong internal economy, it is likely that significantly more foreign investment will flow into Oz, possibly increasing pressure for inflation and even higher interest rates over the medium term here?

    (b) Given that China has been and will continue to up it's interest rates to try and keep a lid on their economic growth rate, Bernanke's cut will now inevitably lead them to start dumping their holdings of $US debt due to the poorer return (leading to a massive blowout in US foreign exchange debt) and conversely lead to even more rapidly increasing foreign investment in China?

    In the end, how far can the US's foreign debt blow out before they kiss their ***ets goodbye?



  7. #7

    Default Re: Fed cuts rates by 1/2%

    Well, the upside of "Bernanke's 50 Basis Points Bonus" didn't last long, did it! Two lousy days and he is already announcing much more pain ahead with loan resets - sounds real promising.

    I wonder how much further they are likely to throw interest rate cuts at this problem. The inflationary downside from the last 1/2% drop has resounded around the globe, with the $US tanking and the cost of goods/services in the US (thus inflation) guaranteed to jump. One wonders what will happen to the greenbuck and inflation if the US cuts up to another 1-2% over coming months in a futile attempt to control their impending recession but "inadvertently" most likely quickening their slide from the top of the world's economic heap?


Similar Threads

  1. Help with trade gone wrong!
    By jonojpsg in forum Stock Market Nuts and Bolts
    Replies: 37
    Last Post: 26th-February-2010, 09:25 PM
  2. When will the US Fed raise interest rates?
    By GumbyLearner in forum General Investment and Economics
    Replies: 6
    Last Post: 8th-December-2009, 04:11 PM
  3. Will the US Fed cut rates in Sept?
    By vishalt in forum International Markets
    Replies: 20
    Last Post: 7th-November-2007, 08:20 AM
  4. Tax cuts negative gearing and housing
    By crackaton in forum General Investment and Economics
    Replies: 8
    Last Post: 28th-February-2006, 09:33 PM
  5. The Fed jacks rates for the 11th time in a row
    By wayneL in forum International Markets
    Replies: 3
    Last Post: 23rd-September-2005, 11:42 AM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums