Maestro : Greenspan\'s Fed and the American Boom Mortgage borrowers should soon start feeling the impact of Tuesday’s Fed rate cut in the form of [tag]lower borrowing costs[/tag] and stingier savings rates. But the rate cut doesn’t offer much help for the key problems bedeviling many homeowners. The Federal Reserve said it lowered [tag]short-term interest rates[/tag] by half a percentage point, to 4.75%, to combat the effects of a weaker housing market and tighter credit on the broader economy. The steep reduction in the Fed funds rate surprised many on Wall Street who expected a more modest rate cut. Stocks rose sharply after the Fed’s announcement, with the Dow Jones Industrial Average gaining 335.97 points, or 2.5%, to 13739.39.

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