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The Federal Reserve Board intervened in the financial markets by cutting short term interest rates to 4.25%. CBS' Anthony Mason calculated that this was the board's third cut in three months "as it tries to steer the economy away from recession." Mason pointed to continuing home mortgage foreclosures and mused that "the Fed could have its hands full." ABC's Betsy Stark (no link) looked at the stock market's reaction, where the Dow Jones Industrial Average responded to the rate cut by selling off 294 points to close at 13432. "Wall Street wanted more," she told anchor Charles Gibson. "The problems in the housing market--whether it is that vast supply of unsold homes or cautious lenders with a lot of bad debt on their books--cannot be solved by modestly lower interest rates."
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