Fed orders emergency rate cut to 1.5 percent

JEANNINE AVERSA
AP
Wednesday October 8th, 2008

The Federal Reserve, acting in coordination with other global central banking authorities, cut a key U.S. interest rate by half a percentage point Wednesday to steady an economy teetering on a collapse reminiscent of the 1929 stock market crash.

Fed Chairman Ben Bernanke and his colleagues ratcheted down their key rate by 0.5 percentage point to 1.5 percent. The action revives the central bank’s rate-cutting campaign which had been halted in June out of concerns that those low rates would worsen inflation. Since then, however, economic and financial conditions have dangerously deteriorated, forcing the Fed to reverse course.

The fact that the Fed felt it couldn’t wait until its regularly scheduled meeting on Oct. 28-29, underscored the urgency of the situation.

The Fed took the action in a coordinated move with other central banks, which also were cutting their rates.

“The pace of economic activity has slowed markedly in recent months,” the Fed said “Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit.”

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9 Responses to “Fed orders emergency rate cut to 1.5 percent”

1. mythicshadow Says:
   October 8th, 2008 at 5:54 am

   http://ca.youtube.com/watch?v=SWkNG0FqHqI

   won’t matter, who will borrow without a job?

2. jfs.infowarrior Says:
   October 8th, 2008 at 6:32 am

   Well, not only won’t matter, but why make it worse by allowing people that shouldn’t be able to borrow to get easy money…again.

3. rich Says:
   October 8th, 2008 at 6:47 am

   of course, a day late and a dollar short !!!!!!!!!!!!! it might help for a day or week if they’re lucky and fools remain blind as to factual financial news like Alex informs the world about !!!!!!!!! 401 K illed, and suckers still invest into it ?????????????

   http://www.youtube.com/watch?v=ZZSsT98hPSg

4. Dave Says:
   October 8th, 2008 at 7:56 am

   The Federal Reserve and the federal government do not deign to interfere in setting the price of houses, the interest rate on mortgages, or the prices of wood and steel. But the Fed’s actions in setting the federal funds rate however, because it reflects the price of money to a borrower and thus affects demand for money, affects prices throughout the economy in a manner less pervasive but just as damaging as direct price controls on wood, steel, etc…

5. npd1969 Says:
   October 8th, 2008 at 8:08 am

   I highly doubt this will help in anyway. The horses are out of the barn and its going to be nearly impossible to corral them.

6. Line in the sand Says:
   October 8th, 2008 at 9:01 am

   We are one step to midnight;want to know what to do?
   There is only one way we can save this land and the (((Uniform Code of Military Justice))) has provisions for this and Must be addressed; to do less is the purest form of sadistic “TREASON”.
   So watch this video for PROPER step’s!!……(MSG to Military,(OUT of THUNDER”>ALPHA<)
   http://www.youtube.com/watch?v=_XgkeTanCGI
   Gain courage and insight from this Womans words (for our CHILDRENS FUTURE)

7. Abaxas79 Says:
   October 8th, 2008 at 11:17 am

   Won’t they drive the value of the american currency down even further ? 1.5% pretty soon they won’t have anything to cut. Is this rate the American Government pays to borrow money from the Fed Reserve ?

8. crippledobject Says:
   October 8th, 2008 at 3:14 pm

   i am gathering people for the revolution go to http://www.myspace.com/fighttheilluminati

9. obama crimes Says:
   October 9th, 2008 at 4:46 am

   STOP PAYING THESE SCUMBAGS AND SPREAD THIS VIRALLY TO YOUR ENTIRE E MAIL LIST.
   http://video.google.com/videop.....3867390173 http://WWW.DONALDTRUMPHAIR.COM http://WWW.THEPENTACON.COM