Monetary Policy

Fed Cuts Funds Rate 50 Basis Points 

In another attempt to shore up the economy, the Federal Reserve on Wednesday lowered the federal funds target rate — the interest banks charge on overnight loans — by 50 basis points to 1 percent. The decision to cut the rate came unanimously, as well, with former hawkish Dallas Fed president Richard Fisher continuing to support a strategy of rate cuts. The Fed also unanimously approved a measure to lower the discount rate 50 basis points to 1.25 percent, as well.