WASHINGTON — The Federal Reserve cut short-term interest rates on Wednesday for the second time in eight days, meeting Wall Street hopes for cheaper money. At the same time, the Senate pushed ahead on a $161 billion plan to prop up Main Street with tax rebates and temporary tax cuts.

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The New York Times

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Text of Federal Reserve Statement (January 31, 2008)

Times Topics: Federal Reserve | Ben S. Bernanke

CNBC: The Fed\'s Half-Point Cut

In lowering its benchmark federal funds rate by half a percentage point, to 3 percent, the central bank signaled that it was ready to err on the side of boldness in fending off a possible recession. It also left open the possibility of additional rate cuts.

The Fed’s move was part of a one-two punch by Washington aimed at jolting the economy with easier credit and extra money. Senate Democrats advanced a fiscal stimulus bill that could inject $161 billion into the economy this year through tax rebates for individuals and tax breaks for businesses.

I think this is Good! Kramer of \" Mad Money \" says the economy will be rolling a year from now and the housing market will be turned around in six months. My question is. What is worse.  Economic fall out like the 80\'s. People and business go bust! After market corrections a New Economy emerges. This seems like a natural process. \" Or \" have the Government step in and Prop up the economy and absorb the losses. Then pass the loses onto the people. I really don\'t know! 

All I know is have you checked your savings account interest lately? .65% and dropping. Inflation is more than that.

BOB, I do not think that the Dumocrates were the ones who pushed that through. They wanted to load it up with a bunch of PORK and Food Stamps that have no business in this type of bill. They should just give Business a tax break and leave it at that.

the demo-craps are not on my top ten list either