October 31, 2007
Fed cuts rate again
The Federal Open Market Committee announced another drop of 25 basis points for the federal funds rate down to 4.5%. The corresponding press release from the Fed included this phrase: ”However, the pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction.”
There is some interesting debate at LALand on how the Fed is viewing the “housing correction.” Peter gives some good advice on reading the tea leaves when it comes to the Fed’s press releases.
