The Federal Reserve cut interest rates by another quarter-point today, as the expected move brings interest rates to 2 percent for short-term lending. They also cut the discount rate by a quarter point to 2.25 percent.
Consensus is the Fed will now take a breather on rate cuts and hold off for awhile to see how the economy responds.
One key element will be how consumers spend their tax rebates; or if they spend them. If they do, it could give a boost to the economy which would give it some time to get back on track. The first wave of rebate checks have already started arriving.
