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Fed Injects $41 Billion Into US Financial System to Help Ease Credit Problems. That’s What We’re Expecting!

Nov 1, 2007 Investment Opinions, Market Outlook, U.S Hot Stocks

Fed Injects $41 Billion Into US Financial System to Help Ease Credit Problems. That’s What We’re Expecting!

From Previously post:  Housing Slump, Oil Soar, Credit Market Meltdown, Crude Oil Woes VS. A Quarter Interest Rate Cut

Consumers, Battered by Housing Downturn and Credit Crunch, Slow Spending in September 

We understand the entire economic is suffering after the second interest cut and today firms still keep announced more job cutting. It worsen the situation.

However,

“The Federal Reserve pumped $41 billion into the U.S. financial system Thursday, the largest cash infusion since September 2001, to help companies get through a credit crunch.

The action comes one day after Fed Chairman Ben Bernanke and all but one of his central bank colleagues voted to slice a key interest rate for the second time in six weeks to protect the economy from the ill effects of collapse in the housing market, aggravated by the credit troubles.”

And previously American largest banks create a fund prevent market from sharply sell-offs. Now Fed pumps $41B into U.S financial system to clean up the credit problems. It seems banks and fed are both working out a way to rescue the market. We are going to see the having more confidence for the future movement of the market and tomorrow is going to be a big turning day for any of us. 

“Fed policymakers at their meeting on Wednesday noted that the “strains from financial markets have eased somewhat on balance.” Still many Fed officials in the last week have described the state of financial markets as fragile. Bernanke and other Fed officials have said it will take time for the markets to fully recover from the credit crisis.

Since August, the Fed has been pumping cash into the financial system to help ease strains from the credit crunch. It also has cut its lending rate to banks — a third such cut came on Wednesday. The Fed also has ordered two reductions to its most important interest rate, the funds rate, to help the situation.”

http://biz.yahoo.com/ap/071101/fed_markets.html 

This big cash pump from fed lead a higher opening for tomorrow and probably rest of this year. 

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