RENEE MONTAGNE, host:
NPR's business news starts with the Fed cutting interest rates and Wall Street's reply.
Concerned about a slowing economy, the Federal Reserve, yesterday, lowered key interest rates a quarter of a percent. But investors said that's not enough. Apparently, Wall Street had been hoping for a half percent cut, thinking that would better cushion the economy from the impact of the mortgage crisis. Stock prices dropped sharply. And that prompted the Fed to take the unusual step of notifying Wall Street that it might do more to inject money into the banking system before the end of the year.
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