Fed cuts discount rate .5 percent
This is a pretty quick response from the Federal Reserve. Will it help stabilize the global financial fallout?
Most Americans will most likely want to know if this discount will be reflected in their home mortgage loans.
The Federal Reserve, declaring that increased economic uncertainty poses risks for U.S. business growth, announced Friday that it has approved a half-percentage point cut in its discount rate on loans to banks.
The action was the most dramatic effort yet by the central bank to restore calm to global financial markets that have been roiled in the past week by a widening credit crisis.
The decision means that the discount rate, the interest rate the Fed charges to make direct loans to banks, will be lowered to 5.75 percent, down from 6.25 percent.