The Federal Reserve Cuts Interest Rate One Half Point
While we slept last night, some pretty interesting things were going on overseas. All one has to do is go to CNN.com or Foxnews.com and see that overseas markets tanked last night, and in response, the Federal Reserve Chairman, Ben Bernanke, cut the key interest rate down to 1.5% from 2%. The Fed had not cut the rate since June of 2008.
What does this mean for us? Well, it is just another Band Aid being used by the Federal Government. What does this mean for inflation concerns? Well, the Fed says that recent drops in energy prices and weaker prospects for economic activity have quelled this fear. I say Bologna. Inflation is coming our way. Hold onto your dead presidents (cash). It will be interesting to see if this band aid is enough to stop the bleeding that is going on in our financial markets.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, and Naples and has expansion plans for Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog.
