Fed Cuts Key Interest Rate to 1%

Summary


WASHINGTON -- The Federal Reserve slashed a key interest rate by half a percentage point Wednesday, driving it to a level seen only once before in the last half-century, and the government finally began distributing funds from the billions in the financial rescue package.

Those efforts and others were part of a concerted drive by officials, just days before a national election, to demonstrate they are moving as quickly as possible to deal with the most serious financial crisis to hit the country since the 1930s.

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Fed Cuts Key Interest Rate to 1%

"Policymakers have their foot to the accelerator and they are using every effort at their disposal to stop the slide in the economy and financial markets," said Mark Zandi, chief economist with Moody's Economy.com. "And it's not a moment too soon given the serious damage tha...

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