Photograph of traders and specialists on the New York Stock Exchange trading floor by David Karp/AP The Federal Reserve lowered the federal funds rate by 25 basis points to 2%, giving this explanation:Recent information indicates that economic activity remains weak. Household and business spending has been subdued and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic......

Photograph of Federal Reserve Chairman Ben Bernanke pausing during testimony last week by Dennis Cook/AP After an ugly Monday in global financial markets while the U.S. markets were closed and Asian stock markets plunging today, the Federal Reserve lowered the interest rate by 0.75% in an "emergency move for the first time since 2001." From the Fed's press release:The Committee took this action in view of a weakening of the economic outlook and increasing......