US Federal Reserve Interest Rates Drops
The US Federal Reserve has been forced to drop interest rates to 5.75 pct due to the crisis in the credit market.
The interest rate cut is said to be “temporary” but many think it will last as long as the credit crisis does.
This interest rate cut is temporary for the moment but if it is maintained then it is likely the Fed will also lower the official interest rate target for the US.
Analyst Sam Kirtley of The Gold Prices Newsletter said: “Any interest rate cut is very bad for the dollar but great for gold. We though the Fed would be forced to cut interest rates soon so we have told our subscribers to invest in gold and gold stocks in preparation for a rally”
What do you think about the drop in interest rates?
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well, the drop in interest rate is due to the bad credit situation in the country, but isn’t that going to further reduce investments in the US by foreign investors, and further damage the economy of the country?