Just in time for the holidays, the FOMC surprised everyone by cutting the Fed Funds 
rate to a range of zero to 0.25%. This 0.75-1.00 reduction is more than the widely anticipated 0.50% rate cut. The Fed also reduced the Discount Rate by 0.75% to 0.50%.
Bernanke and the FOMC didn’t stop with the giving there…they reiterated their commitment to buying mortgage backed securities which keeps mortgage interest rates low.
