Federal Reserve cuts interest rates in efforts to save nation from recession
By: Import User
Updated: January 23, 2008
In a rare between-meetings move, the Federal Reserve cut interest rates by three-quarters of a percentage point. The move, the biggest cut in more than 23 years, was an emergency tactic in response to Monday's global sell-off of shares for fear of a
This emergency rate cut brings the key federal funds rate, for overnight lending between banks, down to 3.5 percent.
The Feds will meet for their regularly scheduled meeting next week where it is expected they will cut the rates again.
Financial analyst George Conboy from Brighton Securities helps explain what this means. Click on the Watch icon.
