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 lower borrowing costs 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 short-term interest rates 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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