Six down one to go – all eyes are on Federal Reserve

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Apr 30 2008
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Six down one more to go – that’s the expectation from the Federal Reserve when Ben Bernanke and his boys get ready for a two-day meeting Wednesday. The general feeling on the street is that the discussion will end with an announcement that the Fed will cut a key interest rate by a quarter-point. A quarter-point cut would move the funds rate to 2 percent – a full 3 percentage points below where it was on Sept. 18 when the Fed started cutting rates aggressively.

After this round of meeting, the Fed is expected to take a break and let the markets take its course. Economists and analysts however believe the Fed will leave the door open for more rate cuts, just in case the troubles persist and require intervention. Wall Street saw investors traded cautiously with most of them stay sideline ahead of the Wednesday meeting.

Meanwhile MasterCard Inc. (NYSE: MA, stock) spiked $31.48, or 13 percent, to $273.98 after reporting that profit more than doubled in the first quarter, and rival Visa Inc. (NYSE: V, stock) rebounded from an early decline to rise $5.25, or 6.9 percent, to $80.88 after reporting late Monday its first-quarter profit increased 28 percent – reported AP. Seems like still got more room for Visa stock to goes up.

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