Fed OKs Quarter-Point Cut

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. (More Federal Reserve stories.)