The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, cut a key interest rate by three-quarters of a percentage point on Tuesday. The Fed said it was cutting the federal funds rate, the interest that banks charge each other on overnight loans, to 3.5%, down three-fourths of a percentage point from 4.25%. (USA Today, Tuesday)
The illusion carries on.
FEE Timely Classic
The Fed Sets Interest Rates? It Just Ain't So! by Richard H. Timberlake