BRBR: Feds slash interest rate
WindsorFox-{SS}-
The Federal Reserve slashed the federal funds rate by three-quarters of
a point this morning and indicated more cuts might be coming. The move
was the first rate cut between scheduled meetings of Fed policymakers
since the immediate aftermath of the Sept. 11, 2001 terrorist attacks,
and came closer to any scheduled meeting since the Fed began announcing
rate changes in 1994, the Wall Street Journal reports. The Fed last cut
the target for the federal-funds rate, charged on overnight loans
between banks, by as much in 1982, when it was lowered a full point.
Prior to 1994, however, fed funds rate cuts weren't announced, and the
Fed relied on the less-important discount rate, charged on direct Fed
loans to banks, to signal its actions. It cut that rate a full
percentage point in 1991. A global stock selloff, fanned by fears of a
recession, led to the rate cut. The Dow Jones industrials, down 465
points at the start of the session, recovered to a loss of about 200
points. For more details on the cut, click
http://www.businessreport.com/news/2008/jan/22/fed-cuts-interest-rate-amid-fears-fnc1/
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