Tuesday, March 18, 2008

Federal Reserve Cuts Rate by 75 Basis Points

The Federal Reserve cut a key lending rate Tuesday by three fourths of a point in an attempt to lower borrowing cost for banks and some consumers to rekindle the economy.
The cut was in line with expectations and will lower the prime lending rate to 5.25%.
The prime lending rate is used to set consumer loans, home equity lines of credit and other loans; it is not related to 30 year fixed mortgage rates.

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