Article: Fed slashes funds rate

By MARTIN CRUTSINGER the associated press WASHINGTON - The Federal Reserve on Tuesday slashed a key interest rate by three-fourths of a percentage point, moving aggressively to contain a credit crisis threatening to push the country into a severe recession. The latest action brought the federal funds rate - the interest that banks charge each other - down to 2.25 percent, the lowest point since late 2004. It marked the second cut of three-fourths of a percentage point this year. The first occurred at an emergency meeting Jan. 22 and was followed by a half-point cut at a regular meeting Jan. 30. Fed Chairman Ben Bernanke and his colleagues now have cut the funds rate six times since ...

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