December 11, 2007

The Federal Open Market Committee (FOMC) announced today that it decided to lower its target for the federal funds rate to 4 1/4 percent, a 25 basis point decrease.

The FOMC also announced a 25 basis point decrease in the discount rate to 4 3/4 percent.
Read the press release

Major banks followed the FOMC's move by reducing their prime lending rates (the prime rate) to 7.25%.