The Federal Reserve’s cut the key interest overnight Tuesday from 5.25 % to 4.75 %. They hope with this move that it will keep the recession at bay. USA has been doing ok for the last 6 years but the housing market crises have made the whole words stock market rumble with fear.
Chinese and Indian markets are depended on USA to buy their things and if the American consumers do not want to buy the markets will plunge.
The house lending banks like Wachovia and Wells Fargo have already start lowering their interest. They and investors like the move that the Federal Reserve did.
It will mean about 30 $ more in the wallet a month for an average American.
