The Federal Reserve reduced a key interest rate by half a percentage point this afternoon. The federal funds rate, which is the interest rate banks charge on overnight loans, is now 1 percent.
The last time the federal funds rate was 1 percent was in 2003-2004. The funds rate has not been lower than 1 percent since 1958.
The Federal Reserve cut the interest rate, its second half-point rate reduction this month, to help revive the economy. In a statement, the Federal Reserve said, "the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and business to obtain credit."
The interest rate cut was expected to be followed by a reduction by commercial banks in their prime lending rate.
In totally unrelated news, French President Nicolas Sarkozy lost a court case that sought to stop the sales of a retail voodoo kit that contained a doll in his likeness, needles and a guidebook. The court ruled that the kit "falls within the authorized boundaries of freedom of expression and humor."
Seasonal Closing - Because the Mashantucket Pequot Museum and Research Center is closing seasonally this year, the Research Library, the Children’s Library, and Archives & Sp...
3 years ago