The Fed splits the difference and lowers the rate by .75

speculation ranged between .5 and 1.0... maybe they don't want to be seen as panicking... well, i got news... it's way too late to worry about that... their credibility is shot...

Fed Lowers Key Interest Rate by 0.75 Percentage Points

The Federal Reserve reduced its benchmark interest rate by three-quarters of a percentage point on Tuesday, to 2.25 percent, a cut that was less than investors had been hoping for even though it was one of the deepest in Fed history.

[...]

Many on Wall Street had expected that the Federal Reserve would lower its benchmark interest rate by a full point. Stocks gave up some of their earlier gains on the news.

[...]

Indeed, expectations about another deep cut in interest rates were so high that the central bank was at risk of setting off a new wave of panicky selling if it had announced a reduction of less than three-quarters of a percentage point.

and then we have this...

With the latest reduction, the federal funds rate is far below the rate of inflation, meaning that the “real,” or inflation-adjusted rate, is below zero. It is also well below the European Central Bank’s benchmark interest rate of 4 percent or the Bank of England’s rate of 5.25 percent.

anybody hear that fat lady singin' yet...? < crickets >

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