Cuts Can Help

According to the article “Fed Cuts Rates Boldly; Wall Street Wary” the Federal Reserve has cut its interest rates even more in the hope that this will less the blow of the recession. The reduction was a larger half point decrease and also with that the President included for individuals tax rebates and more tax breaks for business to help fire up the economy.
I think that this is a good idea and I hope that it will work because our economy right now is in bad shape and we need to do something to help push it out of this recession. I hope that the recession does not cause a major down fall in the United States.
In the article Wall Street when these cuts first happened becomes charged but at the end of the day the Dow Jones was still down. The good thing was that commercial banks followed the Federal government and decreased the prime lending rate to 6%; which also was down half a percent.
According to the article before all the cuts and decrease the economy virtual stopped. This is due to the destroyed housing market, bad mortgage investments, and credit problems both for people and business. The nation’s foreclosure rate has hit an all-time high which is causing banks billions of dollars in losses. The next meetings for the Federal Reserve are set for March and likely there will be more cuts.
I think that the Federal government is doing everything that it can to help stop this recession. I hope that this will help get the economy back on track and make it stronger. I the next President of the United States is going to have a lot to deal with in the economy when the takeover.
This information came for the article “Fed Cuts Rates Boldly; Wall Street Wary” by Jeannine Aversa at http://biz.yahoo.com/ap/080130/fed_interest_rates.html?printer=1.