Photo Credit: epicharmus

I’m about to leave my house when I heard on the news that the Federal Reserve has cut its rate.

The coordinated effort, aimed at stemming the fallout from the spreading financial crisis around the world, will likely bring some much-needed relief.

U.S. futures spiked about two and a half hours before the open, after pointing sharply lower for most of the morning. The move followed the Federal Reserve’s emergency rate-cut announcement, which brought the target for the federal funds to 1.5%, down a half-point.

This is a reaction to the financial crisis in the United States that has affected global markets. The Swiss, Canadian and Swedish central banks have coordinated and made interest rate cuts as well. The Bank of England has cut its rate to 4.5% while the European Central Bank has cut it down to 3.75%.

The Fed has its regular meeting still schedule for October 29, so we’ll see how this turns out. I’m personally wondering if IG Direct will lower their savings account rate. What questions do you have about this bailout and rate cut?

Also, you may want to check out the Carnival of Personal Finance at Girls Just Wanna Have Funds.There are tons of good posts in there.

I have my guest post at Broke Family entitled Should I Invest More in 401k or Should I Pull Money Out up. Please leave your thoughts on it.