FED MAKES EMERGENCY 3/4-POINT RATE CUT

The Federal Reserve made their first emergency rate cut since September of 2001 and the largest cut since 1984 this morning.

From The New York Times:

“It’s a once-in-a-generation event,” said Mark Zandi, chief economist at Moody’s Economy.com. In recent years, the Fed has rarely acted between scheduled meetings of the committee, and almost always in increments of one-quarter or one-half point. It was the biggest short-term cut since October 1984.

In a statement Tuesday morning, Fed officials said they made the decision to lower rates after “a weakening of the economic outlook” and noted that “broader financial market conditions have continued to deteriorate.”