Leave your feedback Share Copy URL https://www.pbs.org/newshour/show/fed-cuts-key-interest-rate-again-in-bid-to-avert-economic-anxieties Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Transcript The Federal Reserve lowered its benchmark interest rate by half a point Wednesday -- the second rate reduction in eight days in a bid to help ease pressure on jittery financial markets. Wall Street Journal economics editor David Wessel examines the Fed's latest move. Read the Full Transcript Notice: Transcripts are machine and human generated and lightly edited for accuracy. They may contain errors. JIM LEHRER: And now, the Federal Reserve cuts rates again. Ray Suarez has that story. RAY SUAREZ: The Fed's decision to lower its benchmark rate twice in eight days ranks among its boldest series of action in two decades.Today's cut follows other news pointing to a slowdown, including a report showing the economy growing at its slowest rate in five years; soaring foreclosure filings, up 75 percent last year; and sales of new homes dropping to their lowest level in 12 years in December.For more on the Fed's decision, we turn again to David Wessel, economics editor for the Wall Street Journal.And, David, does 0.5 percent constitute a significant cut, coming as it does on the heels of last week's 0.75 percent cut? DAVID WESSEL, Wall Street Journal: Well, the combination is what's really significant. This is an extraordinary amount of easing by the Federal Reserve in a very short period of time. It suggests that they really are quite concerned about the economy and are determined to provide this medicine in anticipation of a recession, which may not even have arrived yet. RAY SUAREZ: When the markets opened this morning, everybody was talking about whether it was going to be a quarter-point or a half-point. What did the Federal Open Market Committee say about its reasons for opting for the higher cut? DAVID WESSEL: Well, at the end of every meeting, they issue a statement, and they spend a substantial amount of time thinking about what message they want to send. In this case, they pointed to four things.They said there was still stress in the financial markets. They said credit conditions were tightening, harder for businesses and consumers to get loans, or they have to pay more for them. They pointed to a softening labor market. And they pointed, again, to the plunging price of homes.Those are the four things they cited. And they made clear that they see, as they put it, downside risks going ahead, that they expect to keep cutting rates through the rest of this year.