1% official interest rate in the usa

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    With the possibility of further cuts ........

    NEW YORK (Reuters) - Stocks fell on Wednesday as Wall Street cold-shouldered the Federal Reserve's move to cut interest rates by only a quarter percentage point and was rattled by its warning of possible earnings-eroding deflation.

    After the rate-setting Federal Open Market Committee (News - Websites) trimmed the bellwether federal funds rate to 1 percent, a low not seen since 1958, the Fed announced it was ready to cut the cost of borrowing even more if the risk of falling prices worsened, which some analysts said spooked some investors.

    "Until we see margins increase and pricing power return ... I wouldn't be surprised if the market continued to sell off," said Diane Garnick, chief U.S. strategist at Dresdner Kleinwort Wasserstein. Fed chief Alan Greenspan (News) had "told us explicitly not to worry about deflation but that's the number one concern that they're talking about today," she said.

    Bit Scary
    Dave R.
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