STOCKS FELL after the Federal Reserve decided this afternoon to cut interest rates less than the market had hoped, but the losses were moderate.
The decision by the Fed's policy making Open Market Committee brings the benchmark federal funds rate down a half-percentage point to 5%, and marks the third rate cut of the year, for a total of 1.5 percentage points. The Fed also cut its less significant discount rate by a half percent to 4.5%.
In the minutes before 2:15 p.m. ET Fed announcement, the Dow Jones Industrial Average had been up 42, but lost those gains immediately and was down 22. The Nasdaq Composite Index had been up 11 before the decision. Afterwards it was down 20. The S&P 500 index had been up seven, and it was down six.
The decision by the Fed's policy making Open Market Committee brings the benchmark federal funds rate down a half-percentage point to 5%, and marks the third rate cut of the year, for a total of 1.5 percentage points. The Fed also cut its less significant discount rate by a half percent to 4.5%.
In the minutes before 2:15 p.m. ET Fed announcement, the Dow Jones Industrial Average had been up 42, but lost those gains immediately and was down 22. The Nasdaq Composite Index had been up 11 before the decision. Afterwards it was down 20. The S&P 500 index had been up seven, and it was down six.
