The markets opened the day’s proceedings on a weak note. While selling activity is being witnessed in stocks from the software, metals and telecom space, stocks from the auto and energy space are garnering investors' interest.
The US Federal Reserve has slashed its base lending rate to virtually zero yesterday while pledging to take further action to get credit flowing and revive an economy in the worst recession in decades. Federal Open Market Committee (FOMC) lowered its target federal funds rate from 1% to a range of zero to 0.25%. The move is aimed at fighting off deflation and the ongoing credit crunch. Additionally, the Fed is also planning to take other steps to stimulate lending and economic activity, including large purchases of mortgage securities to help unblock credit. While this is expected to revive the economy in the short term, inflation would likely increase. The US markets closed higher yesterday.
The US Federal Reserve has slashed its base lending rate to virtually zero yesterday while pledging to take further action to get credit flowing and revive an economy in the worst recession in decades. Federal Open Market Committee (FOMC) lowered its target federal funds rate from 1% to a range of zero to 0.25%. The move is aimed at fighting off deflation and the ongoing credit crunch. Additionally, the Fed is also planning to take other steps to stimulate lending and economic activity, including large purchases of mortgage securities to help unblock credit. While this is expected to revive the economy in the short term, inflation would likely increase. The US markets closed higher yesterday.
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