The Fed Cuts Rates by Half a Percent (50 Basis Points)

The Fed just minutes ago cut the federal-fund rate by half a percentage point to 4.75% and the discount rate by half a percentage point to 5.25%. While the market had been anticipating a cut, most observers expected the cut to be a quarter of a percentage point, or 25 basis points.

Savings and CD rates on BestCashCow have fallen in recent weeks in anticipation of this cut. It remains to be seen whether they will further now that the Fed has cut more than expected.

Read the Fed statement.