Fed Cuts Interest Rate by Another 50 Basis Points

Markets were in a lull Wednesday waiting on news of the Federal Reserve and its stance on Interest Rates. In the first meeting of 2008, and with a unscheduled 75 basis point cut in the bank rate earlier, the Fed responded to recession fears by slashing the Interest Rate by .5%.

Inflation indicators were muted leading up to this month's meeting so the Trader talk all circled around a 50 basis point cut. The market got what it expected and the results were volatile. Indices jumped as news came out with the Dow going from about 12450 to 12650 before coming back completely and ending in negative territory.

To start Thursday's session, jobless claims came in higher than expected setting off another sell-off with the Dow starting the way with a triple digit point loss.