Washington (AP) The Federal Reserve is signaling that it might cut interest rates after a series of other bold steps failed to stem the financial meltdown.
The key short-term rate under Fed control, the Federal Funds Rate, is now at 2 percent. Some market watchers suggest the fed cut could be as large as a full percentage point.
Fed Chairman Ben Bernanke yesterday told a gathering of business economists that “the outlook for economic growth has worsened.
Bernanke defends the most aggressive federal intervention in the financial system since the 1930s. And he says regulators are looking for other innovative ways to try to stabilize markets.
Stock Markets globally continue their downward spiral. The Dow Jones industrials have seen a 1,400-point, 13-percent drop over the past five trading days, as pressure builds for the U.S. Government to do even more.