Federal Reserve Makes Huge Rate Cut
The Federal Reserve, amid global fears of a U.S. recession, took the unusual step Tuesday of cutting its key interest rate by three-quarters of a percentage point.
“The committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households,” the Federal Open Market Committee said in its statement.
The cut represented the biggest of its kind since 1984.