« Investor Buying Option One | Main | US Mortgage Lenders to Pump $200 Bln Into Markets »
March 21, 2008
Fed Cuts Key Interest Rate
The Federal Reserve has reduced the federal funds rate by three-quarters of a percentage point, to 2.25 percent, in an effort to lower interest rates across the board, alleviate the credit crunch and prevent the economy from sliding into recession. The central bank also slashed the discount rate to 2.5 percent. The federal funds rate and the discount rate stood at 5.25 percent and 6.25 percent, respectively, last August; but the Fed's cuts since then have not produced the effect policymakers had anticipated because many banks have not respond by lowering rates on mortgages, credit card debt and business loans.
Posted by S. Germain at March 21, 2008 08:08 AM