WASHINGTON — As expected by financial markets watchers, the Federal Reserve today cut the federal funds rate to 2.25%, the lowest it has been in three years, marking the third time it has lowered the rate since September.
The action follows a series of moves the Fed has made to stem the growing credit crisis and subsequent stock market downturn. On the heels of the bailout of Bear, Stearns it helped to structure with JP Morgan Chase recently, the Fed is trying to shore up financial institutions that declared massive write downs from bonds backed by subprime loans.
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