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Fed Cuts Key Interest Rate ¾ Point

But Wall Street had hoped for more

By Sam Gale Rosen, Newser Staff

Posted Mar 18, 2008 1:37 PM CDT

(Newser) – The Federal Reserve today cut the federal funds rate by ¾ of a percentage point, from 3% to 2.25%, disappointing many investors who were hoping for a cut of a full point, reports the Wall Street Journal. The Fed voted 8-2 for the rate cut. "Recent information indicates that the outlook for economic activity has weakened further," the central bank said in a statement, adding it will take further action when needed.

On the plus side, the Fed also said it "expects inflation to moderate ... reflecting a projected leveling-out of energy and other commodity prices and an easing of pressures on resource utilization." But the size of the cut might also show that the Fed is nervous about the dollar's plunge.

Jeffrey Vazquez of Merrill Lynch, Pierce, Fenner, & Smith watches his screen on the floor of the New York Stock Exchange, Tuesday, March 18, 2008. (AP Photo/Henny Ray Abrams)

Federal Reserve Chairman Ben Bernanke arrives on Capitol Hill in Washington, Thursday, Feb. 28, 2008, to deliver the Fed's Monetary Policy Report before the Senate Banking Committee. (AP Photo/Dennis Cook)

Federal Reserve Board Chairman Ben Bernanke appears before the Senate Banking Committee on Capitol Hill in Washington, Thursday, Feb. 14, 2008, to discuss the state of the economy. (AP Photo/Dennis Cook)

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Fed Cuts Key Interest Rate ¾ Point

But Wall Street had hoped for more

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Fed Keeps Rates Low

But central bank sees hope amid slow recovery

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Says it wants to foster recovery

Fed Cuts Rate to 0%-0.25%

Target is record low as Reserve battles recession

Record Low Rates Leave Investors Cold

Cut is likely tomorrow, but Wall Street wants more varied approach

'Race to Zero' Under Way as Central Banks Cut Rates

With Fed at 1% and European, Asian banks trimming, no-interest loans not far off, perhaps

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But Wall Street had hoped for more

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OTHER STORIES ON OUR RADAR

Ben Bernanke • Federal Reserve • weak dollar • interest rate cut

MOST POPULAR STORIES

[ By Views ]

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Fed Keeps Rates Low

But central bank sees hope amid slow recovery

Fed Leaves Rate at Record Low

Says it wants to foster recovery

Fed Cuts Rate to 0%-0.25%

Target is record low as Reserve battles recession

Record Low Rates Leave Investors Cold

Cut is likely tomorrow, but Wall Street wants more varied approach

'Race to Zero' Under Way as Central Banks Cut Rates

With Fed at 1% and European, Asian banks trimming, no-interest loans not far off, perhaps

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