Today, the Federal Reserve cut interest rates by three quarters of a percentage point. This was a move made to reactivate the US economy, which is right now in a critical point.

This was a less aggressive fed rate cut than what most investors were hoping for. The move has moved the dollar higher against other currencies. According to CNN Money:

The 15-nation euro traded at $1.5715, down from $1.5731 late Monday. But prior to the Fed’s decision to cut interest rates, the euro was trading $1.5792.

The dollar also moved higher against the British pound but eased further against the yen.

The greenback has moved sharply lower in recent weeks against a number of foreign currencies on expectations that the Fed will keep cutting interest rates to keep the U.S. economy from entering a recession.

“I don’t think this [cut] changes the outlook for significantly lower rates from here,” said Shaun Osborne, chief currency strategist in Toronto at TD Securities Inc. “Any rebound we might get in the dollar is going to be pretty limited.”

Let’s hope these measures really help the country. America is living hard economic times, and it shouldn’t be like that. Those were the news on the Fed Rate Cut on March 2008.

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