Fed Cuts Rates to Lowest Level Since 2004

The Federal Reserve lowered its key interest rates a half percentage point yesterday, bringing rates down to one full percentage point (1.0%) from 5.25% 18 months ago. Rates are now at their lowest level since June 2004. The move should help prevent the U.S. from tipping into a recession as our worst financial crisis since the Great Depression drags on. 

In typical econ-lingo, the Fed said in a statement, "In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability.

In other words, the Fed hopes its move will help improve the economy. — Sheree R. Curry, MoolahMaven.com