Fed Takes Huge Step to Stop Bleeding – Announces Major Rate Cut

by | BiggerPockets.com

The Fed just announced that it would be cutting the federal funds rate by 1/2 point to 4.75 percent. This is the first reduction in four years and will affect everything from credit cards to adjustable rate mortgages.

Clearly this major cut is indicative of how bad the Fed thinks the economy is. It will certainly provide temporary help for many people, but I’m wondering if it is too little too late . . .

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Joshua Dorkin

Joshua Dorkin (@jrdorkin, Google+) founded BiggerPockets.com when he saw a need for free, trustworthy information about real estate investing online. Over the past 12 years, Josh has grown the site from self-funded hobby to full-time job and passion. Today, BiggerPockets brings together over 850,000 members, housing the world’s largest library of real estate content, iTunes’ #1 real estate podcast, and an array of analysis tools, all geared toward helping users succeed.


  1. The stock markets were already trading on the assumption the fed would lower the feds fund rate a half. I’m scared to see what happens to the devaluation to our dollar going forward. The Euro is getting stronger and the Dollar is dying.

  2. i think the us economy is far worse than the media is portraying, and even though people think their shares may be valuable the devaluation of the dollar makes them far less valuable than they think. i think the safe bet is metals such as gold and silver, they have always held their value and are the only real investment people should be considering

  3. What’s happening with you guys in the States is effecting markets in Europe so I can’t really see the Euro getting much stronger against the Dollar – even if the Dollar is at a record low against the Euro.

  4. I’m not sure the economy is really worse than the media portrays. It’s just like the bank runs of the early 1900’s. When that wave builds up, it’s really hard to stop people from panicking. That’s what’s happening right now. People go into “no spending” mode, waiting to see what everybody else does, and that has a multiplying effect.

    The US economy will STRONGLY affect the Euro, and many other currencies/countries for that matter. I just hope things stabilize come 08.

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