Fed cuts rates to 4.25%; Dow plunges 294 on disappointment
CBS News
Transcript
[Music] it just got cheaper to borrow money in an effort to combat the mortgage crisis the Federal Reserve delivered the third interest rate cut of the year a quartero reduction in the FED funds rate to 4 and a qu% the FED also hinted more rate cuts are to come and that's welcome news for businesses and consumers since today's move lowers interest payments on home equity loans car loans and credit cards but investors voiced their disappointment sending stocks into freef fall Wall Street was hoping for a more aggressive Half Point cut in the end the Dow tanked 294 points the NASDAQ Composite plunged more than 66 another victim of the mortgage mess H&R Block is warning it will post a quarterly loss of $500 million because of problems in its Mortgage business that's thanks to an increase in loan defaults and the tightening credit Market the outlook for job Seekers is dimming as we head into the new year according to a new survey just 22% of companies plan on adding positions in the first 3 months of 2008 while 12% said they expect to reduce their payrolls and more disappointing news for retailers chain store sales Rose just 210 of a% last week and traffic in malls plunged 22% in the week after the Black Friday Rush experts say many Shoppers are just waiting for retailers to start offering those last minute holiday deals that's your money watch log on to cbsnews.com for more at the New York Stock Exchange I'm Alexis christopherus