US Fed creates a crisis of confidence

January 2008
ICIS Chemical Business;1/28/2008, Vol. 273 Issue 4, p5
Trade Publication
The article presents the author's comments on the action taken by the U.S. Federal Reserve Board (FRB) to cut its Fed Fund rates to 3.5 percent to avoid collapse in the financial markets. According to the author, while the monetary stimulus is more than welcome in a period of extreme economic weakness, the FRB only took action after stock markets crashed around the world. He stated that the U.S. Dow Jones Industrial Average dropped 465 points even after rate cut.


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