Fed Cuts Interest Rate to 1 Percent

The Federal Reserve just announced it is cutting its short-term interest rate by half a percentage point, lowering the rate to 1.0 percent.

The move is designed to take some pressure off U.S. consumers, as much of personal credit -- car loans, mortgages, credit card rates and so forth --is based on the Fed rate.

Some consumer advocates think the rate cut may not affect you so much.

Rates are now near their low during the housing boom that caused all the trouble we're in right now.

Over the past 13 months, the Fed has cut rates from 5.25 percent to 1.5 percent in eight steps, in an effort to fight effects of the credit crisis.

-- Frank Ahrens