Fed OKs Quarter-Point Cut
Federal funds figure drops for 3rd month
By Sam Gale Rosen,  Newser Staff
Posted Dec 11, 2007 1:30 PM CST
Traders Joel Lucchese, center, and Donna Izzo work on the floor of the New York Stock Exchange, Tuesday, Dec. 11, 2007. Wall Street rose modestly Tuesday as investors awaited the Federal Reserve's interest...   (Associated Press)
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(Newser) – The Federal Reserve cut two key interest rates at this afternoon's meeting, lopping a quarter-point off both the federal funds rate and the discount rate. The federal funds rate now stands at 4.25%, which represents a drop of 100 basis points over the past 3 months, the Wall Street Journal reports. The discount rate is now 4.75%.

The dissenter from the committee's 9-1 vote was Boston Fed President Eric Rosengren, who wanted a half-point cut. "Economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending," the Fed said in a statement, which also suggested the panel continues to be worried about inflation.