Attitude of the Federal Reserve cut interest rates or re-unification by 25 basis points rate cut.

<P>: Http://finance. News, U.S. Eastern time at 14:00 on October 9, the U.S. Federal Reserve Board (Fed) monetary policy decision announced last regular meeting. .Meeting showed the Fed worried that the credit crisis, economic growth, and thus to cut interest rates by 50 basis points to stimulate the economy. .Accordingly analysts speculate the Fed may again cut interest rates when necessary, and once again cut interest rates on sight. .</ P> <P> attitude of the Federal Reserve cut interest rates uniform </ P> <P> meeting that the U.S. Federal Open Market Committee is clearly aware of the serious risk of economic downturn, in the interest rates reached an unprecedented consensus on the issue. .In the September 18 meeting, the U.S. Federal Open Market Committee members unanimously approved a 50 basis point rate cut decision, the figure has fully proved the Federal Reserve to solve the urgent desire of the credit market problems. .</ P> <P> Earlier, the market was concerned that differences may occur within the Fed, inflation risk in the control and response to potential downside risks to the economy is difficult to reach agreement between the point of view. .</ P> <P> the Fed's change in attitude greatly stimulated the stock market, announced in a few minutes later, the three major U.S. stock indexes rise crashed, the Dow Jones Industrial Average and S & P 500 is once again hit record highs .. .Since the September 18 date, the Dow Jones Industrial Average, S & P 500 index and the Nasdaq Composite index rose 5.7%, respectively, 6% and 8.6%. .</ P> <P> or again cut interest rates by 25 basis points </ P> <P> Although the Fed and for the fourth quarter of 2007, the economy is expected in 2008 is relatively conservative, but this does not rejoice to share the stock market investors .gluttonous feast. .For stock investors, the more important news is that the minutes show that Fed officials worried about the current economic situation may be far higher than inflation concerns. .Thus conclude that most investors believe that perhaps the Fed's Oct. 31 meeting on interest rates might again cut interest rates by 0.25 percentage points. .</ P> <P> economic analyst at Barclays Capital that Julia Kolo (JuliaCoronado) that the Fed continues to cut interest rates in sight. .The Vuitton (Weeden &; Co.) Chief market strategist Steve Goldman (StevenGoldman) agreed that the minutes to pass a very clear signal, if necessary, the Fed continues to cut interest rates reflect only the subconscious. .</ P> <P> still have confidence in the economic rebound </ P> <P> according to meeting minutes, Federal Reserve policy makers believe that the financial market turmoil, the U.S. economy is facing a particularly high level of uncertainty, the downside risk increases. .In the coming months, the credit crisis may deepen the degree of the housing market downturn, and affect consumer spending and business investment growth. .If you do not take measures to cut interest rates, some policy makers worried about the credit crunch will aggravate the economic slowdown and credit crunch in turn deepen the level of economic weakness, and ultimately affect the exports and employment. .</ P> <P>, of course, Fed officials remain confident about the economy rebound. .They mentioned at the meeting, in 1987 and 1998 occurred in two economic crises, the Fed cut interest rates decisively adopted a policy to revive the U.S. economy to do so again. .Fed officials believe that both economic crisis and the current situation has similarities. .</ P> <P> record at this meeting, Fed officials reduced the expected future economic development. .But they believe that interest rates may cause inflation would be improved, the U.S. economic recovery just around the corner. .</ P>.