Federal Reserve Board Lowers Key Interest Rate to 2.25%
Abstract:
The Federal Reserve Board has taken bold action once again to try to deal with problems in the financial sector. A further 75 basis-point cut (100 basis points = 1.0%) in the federal funds rate was announced yesterday. This leaves the Fed’s key policy-setting interest rate at only 2.25% and marks a decline of 300 basis points since last August. The lower rate is designed to stimulate economic activity and thereby restore confidence in the financial sector. Aggressive rate cuts are just one part of the Fed’s action plan.
Comments
No comments posted for this article yet
The Federal Reserve Board has taken bold action once again to try to deal with problems in the financial sector. A further 75 basis-point cut (100 basis points = 1.0%) in the federal funds rate was announced yesterday. This leaves the Fed’s key policy-setting interest rate at only 2.25% and marks a decline of 300 basis points since last August. The lower rate is designed to stimulate economic activity and thereby restore confidence in the financial sector. Aggressive rate cuts are just one part of the Fed’s action plan.