Fed Helps Market Go Up

The Federal Reserve lowered short-term interest rates for the sixth time in the last six months as it continues to attempt to strengthen the economy. The central bank shortened its federal funds rate by 3/4 of a percentage point to 2.25% for overnight loans and left the option for future cuts in the upcoming months. This cut was the biggest one-day cut in decades, and investors were expecting a full percentage point in regards to the possible recession and financial crisis that the country is facing right now. Members of the Fed's policy-making committee expressed dissatisfaction over this cut, siding with an even smaller cut while conveying concerns over possible recession. Some view this as a potential way for the Fed to ease the economy while others guessed this cut was particularly low due to the Fed's alternative to get away from zero percent. The Fed is also cooperating with the European Central Bank, the Bank of Canada and the Swiss National Bank, to loan investment banks money in exchange for debt. This move is essential in order to help create a market for assets that investors nowadays are scared to buy because of the huge decline in stocks that have been experienced in the past weeks.