The stock market has extended its recent downturn as losses mount.
Treasury Secretary Paulson stated in a speech that market stress is
clearly continuing and that maintaining stability throughout the
recovery process remains top priority. He noted that transparency of
market risk must be a higher priority, as it relates to financial
products. Reuters reported that Paulson also stated that further
slowing in the economy threatens to prolong the correction in housing
prices.
Separately, the Federal Open Market Committee will expand its December
meeting to two days, according to Reuters. Markets are currently
pricing in a 66% probability the fed funds rate will be lowered from
1.00% to 0.50%. There is currently a 34% probability the fed funds
rate will be lowered to 0.25%.