Short-Term Interest Rates Slashed Again
In an attempt to jump-start the economy, the Federal Reserve cut short-term interest rates half a point today, marking the third cut of that amount since the year began. The Fed’s target for the federal funds rate, which influences consumer and business loans, is now 5%. It started the year at 6.5% and was cut twice in January. Economists had predicted that the rate would be slashed three-quarters