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 On Tuesday, stocks plummeted after the Fed lowered the target fed funds rate by a quarter point, disappointing investors who hoped for a more aggressive move to boost the economy during the seize-up in credit and rise in home foreclosures. Investors were also unnerved that the central bank did not implement a larger cut in the discount rate
-- the rate the Fed charges banks -- and did not offer a more definite pledge to cut rates further.
The Fed said in its statement: "The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."
But according to media reports, the Fed is actively considering all the tools at its disposal to pump more liquidity into the U.S. banking system. The Financial Times reported that the central bank could announce a move as soon as Wednesday.
After the Dow Jones industrial average's 294-point plunge Tuesday, Dow futures on Wednesday rose 72, or 0.53 percent, to 13,522.
Standard & Poor's 500 futures rose 11.30, or 0.76 percent, to 1,489.40. Nasdaq 100 index futures added 16.25, or 0.78 percent, to 2,106.25.
Light, sweet crude for January delivery rose 68 cents to $90.70 a barrel in premarket trading on the New York Mercantile Exchange.
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 Bond prices fell as investors appeared ready to return to stocks. In pre-market trading, the 10-year Treasury note's yield, which moves opposite its price, rose to 4.06 from 3.97 percent late Tuesday.
The dollar fell against the euro and pound but rose versus the yen. Gold prices slipped.
In economic data, at 8:30 a.m. EST, the Commerce Department is scheduled to report on the October trade balance and November import prices.
Overseas, Japan's Nikkei stock average closed down 0.70 percent, while Hong Kong's Hang Seng index closed down 2.41 percent. Britain's FTSE 100 fell 0.94 percent, Germany's DAX index shed 0.57 percent, and France's CAC-40 dropped 1.09 percent.
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On the Net:
New York Stock Exchange: http://www.nyse.com/
Nasdaq Stock Market: http://www.nasdaq.com/
[Associated Press; By MADLEN READ]
Copyright 2007 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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