Fed Cuts Rate to 1% to Ensure Prolonged Recession
In a panicked move Wednesday, the Federal Reserve cut its benchmark interest rate by half a percentage point to one percent, guaranteeing the worst U.S. economic downturn in the postwar era, if not the worst of all time. Recent policy actions, including today's rate reduction, should help to amplify the downside risks to growth which remain, said the Federal Open Market Committee in yesterday's statement.