The U.S. Federal Reserve Bank announced a lowering of the interest rate for federal funds, meaning the rate banks charge one another for overnight loans.
The rate will be lowered from 4.25 to 3.5 percent.
This is the third interest rate cut since last September, when the bank cut the interest rate by a half-point and then quarter-points in October and December.
The decision, made in an emergency phone meeting of board directors, comes on the heels of a dramatic drop in stock markets worldwide on the slowdown of the U.S. economy and fears over continuing losses there.
The rate was cut before the stock market opened today in hopes of halting or at least slowing this worldwide plunge.
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If you need more help than a cut in the interest rate, it may be time to think about filing bankruptcy.
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Tags: economy, filing bankruptcy, interest rate
This entry was posted on Tuesday, January 22nd, 2008 at 9:12 am and is filed under Economic News: How Are We Doing?. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.