News Journal

Rate cut eases stocks, bond insurers’ triggers fear in market

The cut in rates by one-half percent announced by the Federal after the meet helped the market but the investors are still worried for the U.S. bond insurers and that lowered the indexes at the stock exchanges. The market opened with a low and after the Federal Reserve policy meeting the indexes went up and the market closed with a low.

Earlier Fed had made cut in rates by 0.75%.The companies like Ambac, MBIA and FGIC’s bond insurance are getting downgraded from triple A ratings that is AAA status to AA by the rating agencies. The market finds risk in the financial sector that will be created by the reduction in ratings.