The Federal Reserve cut the key rate by half a percent, to 1%; the Fed noted, "The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures... the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit." The last time the interest rate was 1% was, according to CNBC, the "12-month period from June 2003 to June 2004." The NY Times summed up: "While Fed policy makers now have less room to maneuver on interest rates if the economy deteriorates further, investors had been hoping for the relatively aggressive cut as a sign of vigilance among American central bankers seeking to restore the free flow of credit." Right now, the stock market is relatively unchanged.