A Lump of Coal

The Fed lowered rates today, as expected, but the reduction was not as much as Wall Street hoped. The response was like the kid who finds a lump of coal in his stocking. The rate was dropped by 1/4 point to 4.25%. The anticipation had been building for 1/2 point. When the announcement came, stocks dropped dramatically. There's nothing like a lump of coal to dampen the holiday spirit. The Fed indicated they might lower rates further, but the disappointment was just too great. DJIA -294.26 NASDAQ -66.60 S&P 500 -38.31