Monday, November 05, 2007

Fed slices key interest rate by a quarter point

The Federal Reserve sliced an important interest rate this past Wednesday, its second reduction in the last six weeks. This was done to help the economy survive the strains of a deepening housing slump that is likely to crimp growth in the coming months.

All but one of the Fed colleagues agreed to lower the federal funds rate by one-quarter percentage point to 4.50 percent at the end of a two-day meeting. The funds rate affects many other interest rates charged to millions of individuals and businesses and is the Fed's most potent tool for influencing economic activity.

To read the full article, click HERE.

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