Fed reduces rates by 1/2 point
April 21st, 2008
Going against their previously released statement of not issuing any more rate adjustments, the Fed has again reduced rates by half a percent as the economy slips deeper into financial troubles. They might not have had a choice for if they do not enact such measures, the true extent of the sub-prime lending debacle might be too much for even them to handle. As Economic policy analyst Schiller places it, if the government fails to aid the economy, the current low house prices would exceed levels that were seen during the Great Depression of 1930 when America fell into one of the hardest economic situations of all time. The current crisis is getting worse but their actions may mean the difference between a manageable and a downright uncontrollable economic problem



