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Article: Fed's 'panic' rate cuts do little for equities.
- Article from:
- Financial Advisor
- Article date:
- January 24, 2008
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Byline: Plummeting share prices cause US Federal Reserve to slash its rates
The short-term future for equities remained unclear despite an unexpected drastic cut in interest rates by the US Federal Reserve of 75 basis points to 3.5 per cent but gains quickly disappeared as the markets digested the information.
The Fed's move, the biggest cut since 1984, was seen to be a panic move following mayhem on the global capital markets the previous day as more than AGBP77bn was wiped off the value of shares of the UK's top 100 companies alone - the biggest fall since the terrorist attacks in New York - as a result of recession fears in the US.
Ted ...