USA - FEDERAL RESERVE
Fed to cut interest rates by a quarter point
Tuesday, December 11, 2007
The Federal Reserve has decided to cut interest rates by a quarter-percentage point to help support the US economy in the face of a prolonged housing slump.
Tuesday, December 11, 2007
By Reuters
The Federal Reserve cut a key interest rate by a quarter-percentage point on Tuesday to help the U.S. economy withstand tightened credit and a prolonged housing slump.
The central bank's decision takes the bellweather federal funds rate target down to 4.25 percent. While the action was widely expected, some economists had thought the Fed might offer a bolder half-point reduction in the rate, which governs overnight lending between banks.
In a related move, the Fed trimmed the discount rate it charges for direct loans to banks by a matching quarter point to 4.75 percent.
The Fed has now cut overnight rates, their key economic policy lever, by a full percentage point since mid-September in an effort to put a floor under an economy increasingly seen at risk of falling into recession.
There are no reactions so far.
Be the first user to react to this article.
You will only have to select the button <<REACT>> and fill the indicated fields.
Your reaction
Your reaction has been sent to FRANCE 24. Thank you for your feedback.
France 24 - Send by e-mail
The article has successfully been sent by email
