U.S. stocks rally as investors applaud Fed's easing moves

Date: Tue, 16 Dec 2008 17:01:31 -0500

U.S. stocks rally as investors applaud Fed's easing moves

U.S. stocks soar higher, with banks fronting the surge, as the Federal
Reserve axes its benchmark interest rate to a record low and says it
would buy large amounts of debt and securities to flood the financial
system with money.

THE FED: FED SLASHES RATES AND VOWS TO KEEP THEM LOW FOR SOME TIME

The Federal Reserve pulled out all the stops in its campaign to save
the U.S. economy, slashing interest rates to just about zero and
promising to try an array of new economic measures to stimulate
spending.

MARKETWATCH FIRST TAKE: THE FED GOES TO DEFCON 1

With conventional monetary policy options exhausted, the Federal
Reserve has declared war, promising to do whatever it takes to prevent
a depression.

U.S. home builders start construction of new homes at a November pace
far below the worst levels seen in 50 years, Commerce Department data
show. Building
permits, considered a forward-looking indicator, underscore the weakness in
construction.