Friday, December 19, 2008

Private Client Commentary - Fed moves

Dear Clients,

Wow! And again I say Wow! Can you believe what the Fed plans to do to bring this economy out of what has turned out to be the worst recession in decades?

In case you missed it, they lowered the Fed Funds rate (rate banks charge each other on overnight loans) target to a range of 0 to 0.25%. And, according to their post meeting statement, they are committed to keeping short-term rates very low for the foreseeable future. They also plan to significantly increase their buying of Freddie Mac and Fannie Mae debt, effectively forcing mortgage rates lower

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