Parsing the Fed (September 18, 2007 Edition)

The Fed lowered the Fed Funds Rate by 0.50% yesterday, surprising many market players and defying the "whispers" that called for a 25 basis point change, or none at all. In the statement above -- as explained by The Wall Street Journal -- we can see that the Fed is simultaneously concerned about a recession and inflation. It's an interesting dichotomy. For more analysis, check out Holden Lewis' Winners and Losers piece. It's sunny skies for everyone except the buyers...

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[Source: The Mortgage Reports Blog]