Wednesday brought another rate-cut by the Federal Reserve, as the central bank continued efforts to breathe life into a highly unstable economy. For the second time this month, the federal funds rate (interest charged by banks on overnight loans) was reduced by a half a percentage-point, leaving it at one percent; its lowest level since 2004. Anticipation of this move played a significant role in leading the Dow Jones to its second-biggest point spike (889 points) in history, on Tuesday. Despite the cuts, experts expect financial markets to continue to exhibit the same sort of volatility in the foreseeable future.
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