Fed Cuts Interest Rate 3/4 of a Point
Tuesday January 22, 10:27 am ET
By Martin Crutsinger, AP Economics Writer
Federal Reserve Cuts Interest Rate Three-Quarters of a Point to Try to Head Off Recession
WASHINGTON (AP) -- The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, slashed a key interest rate by three-quarters of a percentage point on Tuesday and indicated further rate cuts were likely.
The surprise reductionin the federal funds rate from 4.25 down to 3.5 percent marked the biggest funds rate cut on records going back to 1990. Federal Reserve Chairman Ben Bernanke and his colleagues took the action after an emergency video conference on Monday night, a day when global markets had been pounded by rising concerns that weakness in the world's largest economy was spreading worldwide. Despite the Fed's bold move, Wall Street plunged at the opening. The Dow Jones industrial average was down 311.99 points in the first hour of trading.
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本帖最後由 碎餅 於 2008-1-22 11:18 PM 編輯 ]
