PR – Euler Hermes Economist Forecasts Continued Rate Cuts

Following the announcement of the Federal Reserve’s interest rate cut, Daniel C. North, Chief Economist for leading trade credit insurer Euler Hermes ACI, issued the following commentary calling for rate cuts to continue into 2008.

“Yesterday, as expected, the Federal Reserve Bank cut the Fed Funds rate by 50 basis points from 5.25% to 4.75%. It was widely anticipated that the Fed would lower the key inter-bank borrowing rate, but expectations were split as to whether the cut would be 25 or 50 basis points. As a result, the stock market rallied in response to the more aggressive 50 basis point cut. However, the rally was most likely a short term relief rally and may not presage a longer term trend.