June 25, 2003 - Posted at: 1:21 p.m. CDT
WASHINGTON -- The Federal Reserve is lowering a key short-term interest rate by one-quarter of a percent.
That brings the rate to its lowest level in 45 years. Policy-makers are hoping the additional drop in interest rates will spur consumer spending and business investment.
Officials at the Fed decided to reduce the federal funds rate from 1 1/4 percent to one percent. It's the interest rate banks charge each other on overnight loans.
One member dissented -- and wanted a larger, half-point reduction.
More to follow...