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March 18, 2008

Bernanke finds brains with ‘only’ three-quarter point rate cut

The Federal Reserve and Chairman Ben Bernanke cut the discount rate only three-quarters of a point, instead of the full point, or even more, a greedy Wall Street had been expecting and lusting for.

How greedy and lusting? The Dow shed 100 points within two minutes of the Fed announcement.

Update: The Street then decided that three-quarters a loaf was better than none, doing a 200-point uptick after the 100-point drop.

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