WASHINGTON, D.C. — In an unexpected move, the Federal Reserve has announced it will cut interest rates by half a percentage point. The cut marks the fourth made this year.
According to reports, the Fed’s action is an effort to boost the slowing economy. The cut brings the federal funds rate overnight bank lending rate down to 4.5 percent, and the discount rate on Federal Reserve loans to banks down to 4 percent.
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So far, stock market response to the decision has been strong. In late morning trading, the Dow was up 390 points, or 3.8 percent, and the Nasdaq index was up 162 points, or 8.4 percent.
