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December 14, 2007
Fed Cuts Rate but Dismays Wall Street
The central bank cut both the federal funds rate and the discount rate by a quarter of a point, lowering the interest rates to 4.25 percent and 4.75 percent, respectively. The move did not please many on Wall Street who were hoping for a bigger cut, such as a reduction by at least a half-percent for the discount rate, and investors responded by sending the Dow Jones Industrial Average down by nearly 300 points. The Fed said it was still concerned about inflation pressures from high energy and food prices.
Posted by S. Germain at December 14, 2007 07:48 AM