Fed quarter-point cut disappoints; Dow tumbles 294
CBS News
Transcript
[Music] will the selloff continue the Federal Reserve cut interest rates for the third time this year by a quarter point in an effort to combat the mortgage mess but investors had been hoping for a more aggressive Half Point cut and news of the fed's decision sent the market into freef fall the Dow Jones Industrial Average tumbled 294 points the ndaq composite tanked 66 the fed's rate cut brings the prime rate to 7 and 1/4% the move lowers interest payments on home equity loans car loans and credit cards the most recent rate cut though may not spell more disaster for the dollar the fed's two previous cuts put pressure on the green back by making us Investments less attractive to outside investors but experts say the dollar declined too far this year and the recent recovery will continue in the coming months the airline industry is headed to Federal Court to try to block New York's passenger Bill of Rights the state law would punish Airlines for stranding passengers on Jets without adequate food water or restrooms the industry argues that only Federal authorities can regulate Airline service Congress and the Bush Administration have proposed new consumer protections but nothing as strong as the New York law and General Motors is one step closer to driving the Vault plug-in electric car into dealer showrooms the automaker has opened a new design shop exclusively for the vault GM is hoping to have a drivable test version of the car by next year it plans to start selling it by 20110 and that's your money watch log on to cbsnews.com for more at the New York Stock Exchange I'm Alexis christopherus