Wreckage from a massive crisis on Wall Street could prompt the Federal Reserve to do an about face and once again cut a key interest rate very soon. If Fed rate cut, will it solve financial tremble?
Don’t expect the central bank to cut interest rates soon at its regularly scheduled FMOC meeting following the Lehman Brothers, Merrill Lynch and AIG developments, even though that’s the action it took in March when Bear Stearns was on the ropes.
If Fed did not cut key interest rate, will AIG and Washington Mutual Bankrupt?
If Fed cut interest rate, will AIG be able to raise $ 40 billion to protect from bankruptcy? What will happen to inflation and weak Dollar in global financial industry?
