Fed Cuts Interest Rate 0.25%

Thebullishtrends: U.S Federal Reserve reduced the interest rate by a modest quarter percentage point (0.25%). It was the seventh reduction in a campaign that has brought rates down by 3.25 percentage points since mid-September. President George W Bush on Tuesday said the U.S. economy faced a "tough time," a point underscored on Wednesday by a report that showed US gross domestic product expanded at a slim 0.6 percent annual rate in the first quarter. While the growth rate was a bit stronger than economists had expected, it reflected a buildup in inventories that may weigh on the economy in coming months.