Fed Drops Interest Rate Three-Quarters of a Point...
By Karen Anne Stone, Fort Worth Real Estate
(New Home Hunters of Fort Worth and Tarrant County)
Announcing that they were taking the extraordinary action of changing rates between their periodic Federal Open Market Committee meetings, The Fed early this morning dropped the Federal Funds rate by 75 basis points, or three-quarters of a point.The size of the rate drop was significant, since a reduction of that magnitude had not taken place since 1990... eighteen years ago.The last time the Federal Reserve Board announced a rate cut between their regularly scheduled meetings was in 2001... reflecting the severity of the market conditions which greatly contributed to the cut.Taking the extremely unusual step, Ben Bernanke, Chairman of the Federal Reserve Board, held an emergency video conference overnight, and announced the rate change approximately thirty minutes before the New York S...
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