Barker on the Fed’s Discount Rate Cut (15:57)
August 20, 2007—Mike Barker, Investment and Retirement Management discusses the Fed’s actions Friday when it cut the discount rate by 0.5%. He talks about reaction in the world’s markets to last week sell-offs in U.S. markets and the timing of the Fed’s cut, the message sent by the size of the cut and how the move effects how the financial markets view Fed chairman Ben Bernanke. Barker discusses the market’s reaction to the cut, the approach of Bernanke verses former Fed chairman Greenspan and how the cut will likely be interpreted.