Posted on Thu, Jun. 26, 2003
"The Federal Reserve lowered a key interest rate by a modest quarter-percentage point Wednesday, signaling that it still expects a better economy soon but is keeping its eye on deflation.""Investors hoping for a bigger, half-percentage-point cut were disappointed and immediately bid down prices for stocks and bonds. Silicon Valley's tech stocks fell by less than other industrial stocks, but the bond market -- where rates for everything from mortgages to consumer loans is determined -- saw yields rise sharply."
