Fed Feared Rate Cuts Wouldn't Be Enough For Economy

Tuesday, Jan 6, 2009  |  Updated 12:12 PM PDT
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Federal Reserve officials feared the economy would be stuck in a painful rut for some time despite their decision to slash interest rates to a record low and pledge to use other unconventional tools to fight the worst financial crisis since the 1930s.

Documents released Tuesday provide insights into the Fed's historic decision to ratchet down its rate from 1 percent to near zero at its Dec. 15-16 meeting.

In the first action of its kind in the Fed's 95-year history, Fed Chairman Ben Bernanke and his colleagues created a target range for its rate, putting it at zero to 0.25 percent.

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