Monday September 17, 8:26 am Eastern Time
Interest Rates Cut Half Percentage Point
WASHINGTON (Reuters) - The Federal Reserve, acting to keep markets functioning in times of turbulence, on Monday cut interest rates sharply in the aftermath of terror attacks on targets in New York and Washington last week.
In a statement, the Fed said it was cutting the closely-watched federal funds rate to 3 percent from 3.50 percent, its eighth rate cut this year. The largely symbolic discount rate was also eased, to 2.5 percent from 3.0 percent.
The Fed also said it believed the U.S. economy continued to face a bigger risk from weakness ahead than from a possible surge in inflation, signaling it stood ready to make more cuts.