Fed may be losing clout to more economy
After six rate cuts the Federal Reserve and Alan Greenspan face a lagging impact on growth. Some observers say the Fed’s leverage faded as long term rates move with markets, while others credit Greenspan and the central bank with influence over the dollar and stock markets amid globalized finance.
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Fed lowers rate a quarter point amid sixth cut this year
The Federal Reserve trimmed a key rate by 25 basis points on Wednesday, marking the sixth reduction of the year. Commercial banks move to cut their prime rate effective Thursday as officials say the process takes time to work.
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