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Time For An Interest Rate Cut?

By Associated Press

Could a rate cut be the solution to the market meltdown? Time For An Interest Rate Cut?

Published: Mon, September 15, 2008 - 9:47 pm Last Updated: Mon, September 15, 2008 - 9:52 pm

The Federal Reserve has a meeting Tuesday on
interest rates. Economists say the Wall Street crisis could force
the Fed to lower rates either tomorrow or in the coming months.

he upheaval in the American financial system
has sent shock waves through the stock market.
It was the worst day on Wall Street in seven years.
The Dow Jones industrial average lost more than 500 points
today, more than four percent of its value. About 700 billion
dollars evaporated from retirement plans, government pension funds
and other investment portfolios.
Helping trigger the carnage was the bankruptcy collapse of the
venerable Lehman (LEE'-mun) Brothers investment bank even as
Merrill Lynch fled into the arms of Bank of America.
Also, American International Group, the world's largest insurer,
is still fighting for survival.
And the Bush administration is signaling that Wall Street
shouldn't expect future rescues from Washington. There are fears
the financial problems could shake consumer confidence.
The Fed meets tomorrow to decide interest rate policy.