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Stocks End Lower At Week's End |
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Written by Value Seeker
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Saturday, 15 December 2007 |
Due to a lower-than-hoped-for Fed cut and lack of hopes for further cuts, stocks ended lower this week.
Many on wall street were hoping the Fed would cut rates by .5% at their December meeting and were disappointed when the Fed only cut by .25%
Since the credit crunch began, the Fed has cut rates by a cumulative 1%, sending the benchmark down from 5.25% to 4.25%. Stocks had rallied in the two weeks prior as many hoped for future rate cuts.
However, investors only got a .25% rate cut this week, and hopes for further rate cuts are dampening due to an inflation report showing higher-than-expected inflation caused by consumers.
Many in the financial media are greatly upset at the Fed. Jim Cramer has turned his Mad Money show into largely a Fed-bashing hour, as he believes the Fed "knows nothing" and is not acting fast enough to prevent a recession.
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