Fed Cuts and Signals Halt

Washington Post (05/01/08) P. D1; Irwin, Neil
The Federal Reserve on April 30 reduced its key interest rate by a quarter of a percentage point to 2 percent, with hopes of preventing the downtown in the economy from worsening. The cut in the federal funds rate is expected to eventually result in lower borrowing costs for consumers who take out adjustable-rate mortgages. The central bank has lowered the interest rate seven times since September but suggested in a statement that the campaign has ended, unless the financial markets deteriorate further. "They're saying, 'Look, we've had monetary policy on steroids for the last few months, but that is changing now,' " says Christian Menegatti, an analyst at RGE Monitor.