The Federal Reserve cut its key interest rate to a range of between 0% and 0.25%, marking the first time ever the rate has dipped below 1%. The Fed said it expects to keep rates near that unprecedented low level for some time to come, CNN Money reports.
Investors predicted the Fed would cut rates to either 0.25% or 0.5%. The Fed said it made the move because of the U.S. economy and its recession. The Fed feared the economy was in danger of getting weaker, and that the risk of inflation had decreased "appreciably."
Taking the rate so close to zero leaves the Fed with little room for additional moves if the economy does not start to show signs of improvement soon. This cut is the tenth rate cut in the last 15 months.
"The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity," the Fed said.