The Federal Reserve has dropped the Federal Funds rate by a half a point from 2% to 1.5%. This is one more response to the worsening economy and stock market.
As I said, I'm not sure how effective this will be in loosening the credit markets. The rate drop was matched by similar rate drops in the U.K., Canada, Sweden, Switzerland, China, Hong Kong and Australia over the past day, so with this world-wide coordinated effort there may at least be a psychological boost to the market.
Wall Street Journal
CNN Money
