Federal Fund Rate cut to 3%

The market expected this 50 basis points cut. The current Rate is 3%. If the cut is a bit lower, investors will be disappointed and will send the Dow sharply down. Fortunately, things went well as expected to avoid a market downturn.

House of Representatives passed a recently proposed stimulus package of tax rebates. US consumer spending showed the weakest growth of only 0.2% in 15 months in December with Americans cautious about the economy. Inflation only rose 0.2% in December and disposable income rose 0.2%.

Recession fear is stronger than a market upside currently. If you are investing for long term, stay invested but look out for opportunity to top-up into your existing portfolio, a bit each time.