Business
Fed cuts interest rates
As expected, the Federal Reserve on Wednesday cut interest rates for the sixth time this year, citing concerns over a slowing economy. The federal funds rate was lowered 25 basis points to 3.
As expected, the Federal Reserve on Wednesday cut interest rates for the sixth time this year, citing concerns over a slowing economy.
The federal funds rate was lowered 25 basis points to 3.75 percent, a seven-year low. In its statement, the Fed said it remains concerned about the sagging U.S. economy, adding that it sees conditions that indicate further deterioration.
In its announcement, the Fed included a short list of economic signs that seem troubling, such as declining spending by businesses and consumers.
"The patterns evident in recent months--declining profitability and business capital spending, weak expansion of consumption, and slowing growth abroad--continue to weigh on the economy," the Fed said in a statement. "The associated easing of pressures on labor and product markets are expected to keep inflation contained." --Sam Ames, Special to ZDNet News