Feds Cut Interest Rates - YAY!!

The U.S. Federal Reserve has cut short-term interest rates by half a percentage point in a co-ordinated international action. The banks said Wednesday morning they were acting to ease "the recent intensification of the financial crisis," in a move that will provide "timely and significant support" to the economy. The banks say inflationary pressures have started to moderate, "partly reflecting a marked decline in energy and other commodity prices."
With the U.S. and international financial system in disorder, Federal Reserve chairman Ben Bernanke and his colleagues resumed a rate-cutting campaign which had been halted in June amid worries about inflation.
"The pace of economic activity has slowed markedly in recent months," the Fed said.
"Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit."
The central banks are trying to encourage shell-shocked banks, consumers and businesses to borrow, lend and spend more freely.