Federal Reserve Cuts Rate Half Point - KCBD NewsChannel 11 Lubbock


Federal Reserve Cuts Rate Half Point

The Federal Reserve says it's cutting its federal funds rate by a half-point to 4.75 %, the first reduction in this key rate in four years.

The board chose the aggressive half-point cut, hoping to keep the steep housing slump and the turbulent financial markets from triggering a recession. The cut was twice as deep as many economists had been expecting. It's aimed at boosting economic growth by lowering borrowing costs for millions of consumers and businesses.

In the minutes after the announcement, the Dow surged by more than 200 points, after already trading solidly higher in anticipation of a rate cut.

NewsChannel 11 News Story Archives-2007
Looking for a story, then search our archives. They are organized by the month and the day that they aired.

Powered by Frankly