Fed weighs rate cut as consumer confidence hits 2-year low
CBS News
Transcript
[Music] From Wall Street to Main Street, all eyes are on the Federal Reserve and the direction of interest rates. The Fed wraps up its two-day meeting in Washington today and analysts expected to result in another interest rate cut. Consumer confidence sank to a two-year low this month, and home prices dropped the most in at least six years. Those reports give the Fed good reason to consider lowering interest rates for the second time in six weeks. Last month, the Fed handed Americans a larger thanex expected halfpoint cut. This time around, analysts are betting on a quarter point reduction to help jumpstart the economy. Another cut would mean lower rates on credit cards, home equity loans, and car loans. Investors were skittish ahead of the Fed's rate decision. The Dow sank 77 points. The NASDAQ lost about a point. A former Meil Lynch CEO Stan O'Neal is being given a golden parachute. Outsted from his job as number one at the brokerage firm, O'Neal will depart with over $ 160 million of stock and retirement funds. He'll also get an office and executive assistant for up to three years. But O'Neal will not get a bonus for 2007. Oil prices pulled back from record highs on word Mexican oil production is returning to normal. Traders are also betting that a government report will show a jump in oil supplies last week. Crude oil shed more than $3 to about $90 a barrel. That's your money watch. Track all your business headlines at cbsnews.com. In New York, I'm Alexis Christopherus.