Wall Street seems to like the news since as of this writing the DOW is up 375 and change and 9,000 is almost within range. Makes me happy.
NEW YORK (CNNMoney.com) -- In its latest effort to try and stimulate the U.S. economy, the Federal Reserve cut its key interest rate to a range of between zero percent and 0.25%, and said it expects to keep rates near that unprecedented low level for some time to come.
The central bank typically sets a specific target for its federal funds rate instead of a range. The rate had previously been at 1% and this marks the first time the Fed has cut rates below 1%. Most investors were expecting the Fed to cut rates to either 0.25% or 0.5%.
Update: Krugman adds "Seriously, we are in very deep trouble. Getting out of this will require a lot of creativity, and maybe some luck too."