The Real Deal Miami

Fed makes emergency interest rate cut

October 08, 2008 11:26AM

The Federal Reserve cut a key interest rate by half a percentage point to
1.5 percent today. The emergency cut revives the central bank’s rate-cutting
campaign, which was halted in June out of concern that the low
rates would worsen
inflation. In addition, the Fed lowered its emergency lending
rate today to banks by
half a percentage point to 1.75 percent. The Fed hopes that reducing
interest
rates will help consumers and businesses spend money more freely again.