Fed cuts interest rates.
The Federal Reserve has cut two key interest rates by three-quarters of a percentage point. The rate cut happened earlier today, just as stocks plunged at the opening bell. The Fed lowered its federal funds rate from 4.25 percent to 3.5. That rate affects how much people pay on credit card debt, home equity lines of credit and auto loans. It also lowered its discount rate three-quarters of a point to 4 percent. That rate determines what it costs banks to borrow directly from the central bank. This was the biggest rate cut by the Fed since October 1984.
Democratic presidential candidates Hillary Clinton and Barack Obama engaged in their most heated debate yet last night. Just minutes into the debate in South Carolina, the two exchanged sharp criticisms over health care and other issues. On numerous occasions, they interrupted each other and even turned to direct their responses to each other instead of a panel of moderators. Former Senator John Edwards tried to stay out of the heated exchange. South Carolina voters will go to the polls on Saturday for the first Democratic primary in the South.
Israel is allowing fuel and medical supplies into Gaza today after an earlier blockade left residents struggling with major power cuts. Last week, Israel closed all border crossings with Gaza after days of rocket attacks on the southern part of the country. That sparked massive protests and a fear from aid agencies that the move could turn into a humanitarian crisis.
President Bush marked the Martin Luther King holiday yesterday with a visit to Washington's downtown library named after the historic individual. The President, First Lady and D.C.'s mayor participated in a lesson for a handful children. Bush posted pictures on a bulletin board and taught the students how King fought to change unfair laws.
