Wednesday, October 31, 2007

Fed Cuts Rates 1/4 Point In Effort To Boost Housing

As expected, the Federal Reserve has cut it's benchmark federal funds rate by 1/4 point to 4.5% following the September cut of 1/2 of a point.
This move helps alleviate pressure on banks suffering from losses associated with the sub-prime lending crisis and should make the environment for new home buyers incrementally better.
This reduction in rates helps the New York real estate market more than most, as there have been far less issues stemming from the national housing correction. The reduction also increases the potential for a stock market rally, and hence helps the profit picture on Wall Street.
More soon....

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