Fed lowers interest rate by quarter-point

The Fed called the move an effort to promote moderate growth over time – a response to information that “suggests economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks,” according to a statement.

The federal funds rate is the rate at which banks trade balances at the Federal Reserve.

Also today, the Fed cut its discount rate by a quarter-point to 4.75 percent.