Wall Street rallies again on Bush plan, high hopes for Fed rate cut

Wall Street has been concerned about the housing slump's impact on consumers. However, stocks eventually pushed higher; a weak consumer, though bad for corporate profits, at least supports the opinion of the Federal Reserve to lower interest rates. A rate cut could help rejuvenate the slowing economy and loosen up the tight credit markets.

As President Bush announced a plan allowing some homeowners facing foreclosure not only to freeze their interest rates for up to five years, but also to refinance their mortgages, stocks got a major boost. The plan was created by the Treasury Department, mortgage lenders and banks, and might be able to help about 1.2 million homeowners.

To read this full article by Madlen Read, click HERE.