Federal Reserve chairman Ben Bernanke announced several cuts in the first two quarters of 2008, dropping the Federal Funds Rate to a low of 2.00% on April 30. The Federal Reserve cut the federal funds rate by another half-point on October 29, 2008, bringing it down to 1.00%.CNNMoney.com: Fed cuts rates again (October 29, 2008)
Background
Traditionally the Federal Reserve will cut rates in order to spur economic growth and encourage consumer spending. In order to fight inflation the reverse is usually true: the Fed will implement a rate hike.
Federal Reserve Rate Cut News
CNNMoney.com: Fed cuts rates again (October 29, 2008)
The New York Times: Fed Cuts Rates by a Quarter Point, ... (April 30, 2008)
Bloomberg.com: Fed Cuts Main Rate to 2.25%, Says Outlook (March 18, 2008)
WSJ.com: Fed Cuts by Three-Quarter Point, Suggests More... (March 18, 2008)
BostonHerald.com: Fed cuts rates by three-quarters of a point (March 18, 2008)
The Dallas Morning News: Fed Cuts Rate, Aids in Buyout (March 17, 2008)
Bloomberg.com: Fed Lowers Rate to 3% as U.S. Expansion Falters (January 30, 2008)
ABC News: Fed Cuts Interest Rate - Again. Will Economy Be Saved? (January 30, 2008)
Google News: Fed Funds Rate
References
Fast Facts
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Rate as of October 29, 2008
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Rate as of July 18, 2008
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Fact:
The most recent cuts are viewed as a gesture to ailing banks to prevent further spread of the credit crisis into the greater American economy
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Fact:
A rate cut occurred just days after the government extended Bear Stearns an emergency loan
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Fact:
The March 16 announcement occurred on a Sunday, a rare practice for the Federal Reserve
