Fed cuts key interest rate by half-point

Current and aspiring Long Island homeowners warmly greeted the Federal Reserve's decision to cut a key interest rate by a half-point Tuesday. The Fed reduced the interest rate for the first time in four

News 12 Staff

Sep 18, 2007, 9:59 PM

Updated 6,151 days ago

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Current and aspiring Long Island homeowners warmly greeted the Federal Reserve's decision to cut a key interest rate by a half-point Tuesday.
The Fed reduced the interest rate for the first time in four years, from 5.25 to 4.75 percent. The rate cut is double the quarter-point reduction many economists had expected.
Economist Marty Cantor said it could take three to six months before the effects are evident.
"It percolates through," Cantor said. "The lower rates go to the homeowner, then they spend and it filters through to the economy to production and into consumer buying. And it takes that long for the accumulated impact to be felt."
Hempstead resident Jack Ware is preparing to move from his apartment into his own home.
"It's less you have to pay," Ware said of the Fed's announcement.
For Ware, each quarter-point interest rate cut saves him $120 a month on his upcoming mortgage payment.
Related Information:LIerswait as Fed expected to slash interest rate


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