Who Made Who? Fed's Decision Puts the Market Front and Center
This rate cut had something in it for everybody.
Today's 50-basis-point move by the Federal Reserve
acknowledged a significant slowing in the economy, one that seems to have surpassed economists' projections. It is also likely to alleviate tight credit conditions, which have made it hard for borrowers to get badly needed cash.
But economists and market observers believe public perception has more to do with the Fed's surprising action today than anything else. Now, when more than half of all American households own stock in one form or another and Alan Greenspan
has achieved celebrity status, it's clear that the Fed, while acting prudently and reacting to the economy, is also mindful of its own perception within the economy and investment community. ...
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