FED cuts rates -0.75% to 3.5%

2008-01-22 08:26am EST (13:35 GMT)
Federal Reserve cut its benchmark funds rate by 75 basis points. From 4.25% to 3.5%.
http://www.reuters.com/article/bondsNews/idUSNYG00090420080122

3.5 percent, its lowest level since September 2005. The Fed also lowered the discount rate it charges on direct loans to banks to 4 percent.
http://www.globeinvestor.com/servlet/story/ROC.20080122.2008...

"The biggest one-day move by the central bank in recent memory."
Fed Cuts Interest Rate Amid Global Stock Sell-Off and Fears of Recession.
http://biz.yahoo.com/ap/080122/fed_interest_rates.html

The Fed action was the most dramatic signal it can send that it is concerned about a potential recession in the United States.
http://www.cnbc.com/id/22780522

"Dow Jones industrial futures, down more than 500 points, or more than 5 percent, before the Fed move, were fluctuating violently an hour before the start of trading, but improved to a level where they were down 206, or 1.70 percent, to 11,900."
http://biz.yahoo.com/ap/080122/wall_street.html

"...we do think they will ease by another 50 at at the March 21 meeting. The economic data will continue to worsen; this move is not an instant fix. The economy is still staring recession in the face, but at least the Fed now gets it.”
Ian Sheperdson,
Chief U.S. Economist at High Frequency Economics, Ltd.
http://www.fxstreet.com/news/forex-news/article.aspx?StoryId...

"The Fed is obviously panicked, but unfortunately they have no power to reverse what in my opinion is the worst post-war recession."
Michael Metz,
Chief investment strategist, Oppenheimer & Co
http://www.earthtimes.org/articles/show/176859,wall-st-set-f...

"This is a stock-market crisis. Investors believe that neither a government package nor a huge rate cut is going to help evade a recession in the U.S."
Alberto Roldan,
Head of research at Inverseguros SVB in Madrid

"The situation is . . . serious. All the countries in the world are suffering from a slowdown in growth in the United States."
Dominique Strauss-Kahn,
International Monetary Fund chief

http://articles.moneycentral.msn.com/Investing/Dispatch/0801...

The next meeting is scheduled for Jan. 29 and 30. Markets anticipate another rate cut, possibly a half-point cut, at that time.
Rex Nutting, Washington bureau chief of MarketWatch

UK to 4.0%?

Speaking at a press briefing ahead of today's surprise Fed rate cut, Lambert, a former rate-setter at the Bank of England cautioned against rates in the UK being reduced too much as inflation remains an ongoing concern.

Some Bank watchers reckon the Monetary Policy Committee may reduce its benchmark Bank Rate to 4.00 pct this year from the current 5.50 pct.
http://www.forextv.com/Forex/News/ShowStory.jsp?seq=256046

EZB to 3.5%?

Der Leitzins in der Euro-Zone liegt bei 4,0 Prozent. Für Europa erwartet der Markt inzwischen auch mit Sicherheit Zinssenkungen... "Die EZB braucht ein bisschen länger, aber bei uns sind auch 3,5 bis 3,75 Prozent drin", prognostizierte Commerzbank-Rentenstratege Peter Müller."
http://de.reuters.com/article/marketsNews/idDEBON24676620080122