Short-term rates nearing historic lows

Fed slashes overnight rate to 1 percent

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For the second time this month, the Federal Reserve has cut a key short term interest rate, but the widely anticipated move was expected to have little immediate impact on mortgage rates.

In slashing its target for the federal funds overnight rate by 50 basis points, to 1 percent, the Federal Open Market Committee said a decline in consumer expenditures has "markedly" slowed economic activity.