It was announced yesterday that the Federal Reserve Board approved a rate cut of half a percent. This move is aimed at stimulating the economy to avoid a recession. Apparently, the recent troubles in the housing and job markets have outweighed the threat of increasing inflation despite rising energy prices.

This cut in rates should be good news for the stock market. Yesterday, the Dow Jones rose over 200 points within the first 10 minutes of the announcement. Likewise, this should be good for anyone who is planning on purchasing a home in the near future. Mortgage interest rates are expected to follow suit and show begin lowering today.

So far, this is all working into my master plan. I've been predicting that interest rates would come down in the second half of the year. I also predicted that we'd see some decrease in gas prices after the relatively strong rises we saw in the first half of the year. If that happens too, I'll call myself clairvoyant.