CNN 30.4.2008
The Federal Reserve
cut the fed funds rate, a key overnight bank lending rate, by a
quarter-percentage point to 2%, as expected. In its closely-watched
statement, the central bank indicated that the economic outlook is
not as dour as it has been recently and that its rate-cutting
campaign could soon take a breather.
The announcement fulfilled expectations that some inflationary
concerns are creeping in, said Steven Goldman, market strategist at
Weeden & Co. But It also indicated that the bankers think the
economy is starting to or will soon start to respond favorably to
the series of cuts already in place, he said. As a result, "this
may be the last cut for the foreseeable future,' he said.
The recent rally in stocks over the last month suggests that the
equity market is looking ahead and anticipating a better
environment. "Hopefully, upcoming economic news will reflect that
optimism," Goldman said.