Fed Trims Rate to 2%

But central bank sees hope amid slow recovery

(AP) - The Federal Reserve has decided to hold interest rates at a record low and pledged to keep them there for an "extended period" to keep the recovery going and drive down double-digit unemployment. But in a more upbeat assessment, the Fed says the US economy has "continued to pick up" and that "deterioration in the labor market is abating," a nod to the recent slowdown in the pace of layoffs. More»

Says it wants to foster recovery

(AP) - The Federal Reserve today held a key interest rate at a record low and again pledged to keep it there for an "extended period" to foster the fragile economic recovery. The Fed says economic activity has "continued to pick up" and that the housing market also has grown stronger, a key ingredient to a sustained recovery. More»

(NEWSER) - The Federal Reserve anticipates the recession will continue through 2009 despite its recent rate slash and other planned “nontraditional policies,” the Wall Street Journal reports. Minutes of the Fed's December 15-16 meeting, at which it cut rates to nearly zero, indicate a deep pessimism about the economy. Officials expect the unemployment rate to keep rising as the GDP contracts. More»

It drops key interest rate to 0.1%

(NEWSER) - The Bank of Japan cut interest rates from 0.3% to to 0.1%, within the historic zero- to quarter-percent range that the Fed chose earlier this week. Central bankers were responding to a deep recession as well as a soaring yen, which recently hit a 13-year high against the dollar. In its statement, the BoJ said it may cut rates again and will accelerate the buying of Japanese government bonds. More»

Target is record low as Reserve battles recession

(AP) - 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%. More»