Federal Reserve cuts federal funds rate by .25%
Ben Bernanke, the chairman of the Federal Reserve, and his fellow policy makers cut the federal funds rate for the third time in a row Tuesday, and stocks plummeted as a reaction out of disappointment that more aggressive rate cuts were not made.
The rate cut affects how much interest that consumers pay on credit cards, home equity lines of credit and auto loans. The current federal funds rate is now 4.25 percent.
The resulting stock-market backlash was overwhelmingly apparent, as the Dow dropped 2.1 percent (approximately 300 points). The S&P and NASDAQ both dropped approximately 2.5 percent.
The Fed had dropped rates by .5 percent back in September, and at least one member of the Fed’s policy-making committee, Eric Rosengreen, voted to repeat that measure on Tuesday.
Many had hoped a larger rate cut would help alleviate some of the mortgage crisis that is occurring. The fear of a recession also looms, though it is not certain that a larger rate cut would prevent the recession if it were already inevitable.
The Fed’s refusal to do such large-scale cuts is a sign that it isn’t going to do any favors in helping out banks and borrowers.
Related Articles
7 Parking Tips for Chicago Loop Commuters in 2026
Smart parking tips for the Chicago Loop to help commuters avoid fines, reduce stress, and find safe, convenient garage options.
A New Crush: Gracie Abrams Joins Chanel’s Coco Crush as Its Latest Muse
Chanel is off to a strong start in 2026 as the Maison has just announced Grammy-nominated singer-songwriter Gracie Abrams as the newest muse.
Introducing Louis Vuitton Fall–Winter 2026 Men’s Trunk Edition: A Modern Study in Timeless Style
Louis Vuitton introduces the Fall–Winter 2026 Men’s Trunk Edition, a refined wardrobe designed by Men’s Creative Director Pharrell Williams. Launching February 5, 2026, the collection draws inspiration from the House’s first-ever creation—the 1854 trunk—reimagined as a modern expression of effortless elegance, versatility, and enduring craftsmanship. The Trunk Edition is conceived as a complete transitional wardrobe, […]
Jonathan Anderson’s Dior Hits Stores
On January 2, Jonathan Anderson’s first women’s collection for Dior arrives in stores. Released as the first wave of Spring Summer 2026.
Give Your Home a Modern Boost With Bay Window Replacements in 2026
Upgrade bay windows in Indianapolis to boost light, comfort, efficiency, curb appeal and home value with modern designs and expert installation.
Rewriting the Rules: Sedge Beswick on Risk, Motherhood, and Success
In a world that runs on conformity, Sedge Beswick has established her career through standing apart. A builder, forward-thinker, and creative strategist, Beswick has built her career by seeing new opportunities where everyone else sees risk.
Latest Stories
Trending Articles
Related Articles
7 Parking Tips for Chicago Loop Commuters in 2026
Smart parking tips for the Chicago Loop to help commuters avoid fines, reduce stress, and find safe, convenient garage options.
A New Crush: Gracie Abrams Joins Chanel’s Coco Crush as Its Latest Muse
Chanel is off to a strong start in 2026 as the Maison has just announced Grammy-nominated singer-songwriter Gracie Abrams as the newest muse.
Introducing Louis Vuitton Fall–Winter 2026 Men’s Trunk Edition: A Modern Study in Timeless Style
Louis Vuitton introduces the Fall–Winter 2026 Men’s Trunk Edition, a refined wardrobe designed by Men’s Creative Director Pharrell Williams. Launching February 5, 2026, the collection draws inspiration from the House’s first-ever creation—the 1854 trunk—reimagined as a modern expression of effortless elegance, versatility, and enduring craftsmanship. The Trunk Edition is conceived as a complete transitional wardrobe, […]
Jonathan Anderson’s Dior Hits Stores
On January 2, Jonathan Anderson’s first women’s collection for Dior arrives in stores. Released as the first wave of Spring Summer 2026.
Give Your Home a Modern Boost With Bay Window Replacements in 2026
Upgrade bay windows in Indianapolis to boost light, comfort, efficiency, curb appeal and home value with modern designs and expert installation.
Rewriting the Rules: Sedge Beswick on Risk, Motherhood, and Success
In a world that runs on conformity, Sedge Beswick has established her career through standing apart. A builder, forward-thinker, and creative strategist, Beswick has built her career by seeing new opportunities where everyone else sees risk.
Subscribe to Haute Living
Receive Our Magazine Directly at Your Doorstep
Embark on a journey of luxury and elegance with Haute Living magazine. Subscribe now and have every issue conveniently delivered to your home. Experience the pinnacle of lifestyle, culture, and sophistication through our pages.
Haute Black Membership
Your Gateway to Extraordinary Experiences
Join Haute Black and unlock access to the world's most prestigious luxury events