Bank One were the first to announce a similar half-point cut in their prime lending rates, effective Thursday. Others are expected to follow. The prime rate is the standard for a variety of loans from credit card balances to home mortgages. This is the second half-point interest rate cut by the Fed this month.
Officials say they made the move to ward off a recession in a faltering economy.
And there could be more to come, says Jeff Rosensweig, finance professor at Emory's Goizueta School of Business. I'm still predicting one more cut sometime in the next few months. All rights reserved. By using this website, you accept the terms of our Visitor Agreement . Please read it.