In a highly anticipated move, The Fed cut interest rates Tuesday by a quarter point. The only problem was that the anticipation was for a half point and the market was let down as evidenced by the Dow’s plunge of 300 points.
It is down from 4.5 to 4.25%. The Fed hopes to ward off a recession and give the economy a boost in light of the housing slump and industry mortgage troubles.
Bernanke left the door open for another rate cut during Q1 2008 if need be.