The Federal Reserve?s half-point cut to a majorinterest rate Tuesday was a strong move to prevent a sluggish credit market from becoming a full-on recession, according to local economists.
“I think that it will have a near-term positive effect on credit markets,” said Peter Morici, a University of Maryland economist and former chief economist with the U.S. International Trade Commission. “It will help forestall a recession, this is a strong statement. Bernanke sees real weakness in the credit market spreading through the economy.”
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