Fed OKs Quarter-Point Cut

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• Banks Boost Interest Rates to Lure Deposits

  Nov 14, 08 11:03 AM CST
  Banks are boosting interest rates on deposits in an effort to increase the supply of cash available for lending, resulting in what one consultant calls a "national price war," the Wall Street Journal reports. Many banks are pinched between the desire to build up deposits and the shrinking profit margins that come with paying higher interest on those funds. "Where you can really get hurt is on the liquidity side," says one banker.
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• 'Race to Zero' Under Way as Central Banks Cut Rates

  Nov 7, 08 12:25 PM CST
  Interest rates around the world are falling, with no end in sight as central banks hack away at obstacles to lending and try to jump-start their economies, Bloomberg reports. With the US rate at 1%, the Bank of England yesterday cut its key figure to 3%, the lowest since 1955, and the European Central Bank cut its rate by half a point, to 3.25%.
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• Think 1% Is Low? He Could Go to Zero

  Oct 30, 08 9:45 AM CDT
  Yesterday Ben Bernanke cut the federal funds rate to an ectomorphic 1%—but the Fed might not be done yet. More and more analysts are predicting that the central bank will have to cut rates all the way to zero if it wants to get the economy moving again. But don't get too excited, writes the New York Times: A 0% funds rate would apply only to interbank lending, and wouldn't mean free money for consumers.
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• Dow Down 74 After Volatile Day

  Oct 29, 08 3:19 PM CDT
  Volatility ruled Wall Street today as investors waffled in their response to the expected Fed rate cut, MarketWatch reports. Though the session’s final hour saw the Dow rocket to a 250-point gain in light trading, that evaporated and the Dow closed down 74.16 at 8,990.96. The Nasdaq, however, finished up 7.74 at 1,657.21, while the S&P 500 lost 10.42 to close at 930.09. More »

• Fed Cuts Rate Half-Point to 1%

  Oct 29, 08 1:29 PM CDT
  The Federal Reserve surprised no one today, cutting interest rates by half a point, to 1%—as investors widely predicted he would, AP reports. “The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures,” the Fed said in a statement, with the financial crisis “likely to exert additional restraint on spending.”
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