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News Alert: Fed cuts rates by .75 percent at unscheduled meeting

By Nicole Hall – LendingTree.com
The Federal Reserve Board slashed interest rates three-quarters percent on Tuesday, January 22 in an apparent reaction to weakening economic conditions and turmoil in global financial markets.
The emergency action was the largest unscheduled interest rate cut in over 20 years. The move lowered the target on a key short-term interest rate from 4.25 percent to 3.5 percent.
The decision was made ahead of the Fed’s regularly scheduled meeting to take place the week of January 28. “The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth,” the Federal Open Market Committee said in a statement issued Tuesday, January 22.
Also in the statement, the Fed noted that “broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households.”