federal funds rate

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Fed Raises an Interest Rate

But no change expected soon on benchmark rate

(Newser) - The Federal Reserve raised the discount rate—the interest rate it charges banks for emergency loans—by a quarter point today. The central bank said the move, widely expected by the financial community, represented only the winding down of the extraordinary measures taken during the financial crisis to stimulate lending,... More »

Dow Jumps 359 on Rate Cut

Hopes that financials may soon be clear of bad debt also buoys sentiment

(Newser) - Stocks rallied today as investors cheered the Federal Reserve’s sharp federal funds rate cut and other policy measures designed to combat the economic crisis, the Wall Street Journal reports. The Dow rose 359.61 to close at 8,924.14. The Nasdaq climbed 81.55, closing at 1,589.... More »

Banks Boost Interest Rates to Lure Deposits

'Price war' increases pressure on profit margins, loan funds

(Newser) - 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... More »

Dow Rises 189 After GDP News

Early news on shrinking GDP can't keep indices from rising

(Newser) - The markets held ground after an early rally today, with investors shrugging off a smaller-than-expected fall in third-quarter US gross domestic product and remaining cautiously optimistic over yesterday’s Fed rate cut, MarketWatch reports. The Dow closed up 189.73 at 9,180.69. The Nasdaq rose 41.31 to... More »

Dow Down 74 After Volatile Day

Late rally evaporates after Fed confirms cut, but most of Tuesday's gains are preserved

(Newser) - 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... More »

Fed Cuts Rate Half-Point to 1%

1% is lowest mark since 2004 as Bernanke tries to combat slowdown

(Newser) - 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,... More »

Poor Day Ends Horrible Week

Dow off 312, but bears show some restraint

(Newser) - US stocks declined today but stopped somewhat short of total free fall after global markets plunged close to 10%. With perhaps a buffer from news of a bump in existing US home sales, the Dow fell 312.30 to close at 8,378.95, MarketWatch reports. The Nasdaq dropped 51.... More »

Consumer Prices Surge Most Since '91

Consumer prices up 1.1%; wholesale up 1.8%.

(Newser) - Consumer prices rose a staggering 1.1% in June, Bloomberg reports. The figure far surpassed analyst estimates, and brings the year-over-year figure to 5%–the biggest surge since 1991. Core inflation, which excludes food and energy, rose a more-than-expected 0.3%. “Inflation has galloped,” one economist said. “... More »

As Expected, Fed Holds Steady

Federal funds rate stays at 2% as bank ends 10-month run of cuts

(Newser) - The Federal Reserve decided today leave a key interest rate unchanged, bringing an end to a string of consecutive rate cuts aimed at keeping the country out of a deep recession. The federal funds rate will remain at 2%—the first time in 10 months the Fed has failed to... More »

Fed OKs Quarter-Point Cut

Federal funds figure drops for 3rd month

(Newser) - 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 ... More »

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