Fed Cuts Rate to 0%-0.25%
Target is record low as Reserve battles recession
By Newser Editors and Wire Services
Posted Dec 16, 2008 1:40 PM CST
Federal Reserve Chairman Ben Bernanke appears on a television screen on the floor of the New York Stock Exchange, Monday, Dec. 1, 2008.   (AP Photo/Richard Drew)
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(Newser) – The Federal Reserve today cut its target for a key interest rate to the lowest level on record and pledged to use "all available tools" to combat a severe financial crisis and prolonged recession. The central bank says it reduced the federal funds rate, the interest that banks charge each other, to a range of 0% to 0.25%.

That is down from the 1% target rate in effect since its last meeting in October. Federal Reserve Chairman Ben Bernanke and his colleagues also pledged to use "all available tools" as they struggle to contain a financial crisis that is the worst since the 1930s and a recession that is already the longest in a quarter-century.