January 22, 2008

The Federal Open Market Committee (FOMC) lowered its target for the federal funds rate to 3 1/2 percent, a 75 basis point decrease. The FOMC also announced a 75 basis point decrease in the discount rate, bringing it to 4 percent. Read the press release

Major banks followed the FOMC's move by reducing their prime lending rates (the prime rate) to 6.50%.