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Economy

FOMC Delivers With 50/50 (September 18, 2007)

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By Douglas A. McIntyre Published
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Today was the planned FOMC decision on interest rates and it seems there was a split between those looking for 25 or 50 basis points.  We were in the latter group, or at least that is what we think it will take to smooth things out with added measures down the road (perhaps not in fed funds ahead though).

We got on the 50 basis point cut to 4.75% on FED FUNDS and got a 50 basis point cut to 5.25% on the DISCOUNT RATE.  The markets have initially reacted in favor when you compare NOW to 2:10 PM EST.  The DJIA is now up some 200 points, although we won’t speculate where these end up.

Here is the STATEMENT from the FOMC.

If you’d like to compare how this looks in comparison to the minutes of the August 7 meeting (released August 28), you can link to that here.

Here is a snapshot of where the markets were at 2:10 PM EST a few minutes ahead of the decision:
DJIA          13,478.86; +75.44 (+0.56%)
S&P500    1,485.77; +9.12 (+0.62%)
NASDAQ    2,591.06; +9.40 (+0.36%)
10YR-Bond 4.501% (+0.031%)

This follows today’s PPI release today that was great for the inflation hawk worries, although I have heard more people questioning the data than there are believers.  We also had the weakest homebuilder sentiment reading supposedly in about 20 years.

Jon C. Ogg
September 18, 2007

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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