Getting your player ready...
WASHINGTON — Even as Federal Reserve officials slashed their key interest rate to a record low and pledged to use unconventional tools to fight the worst financial crisis since the 1930s, they still feared that the economy would be stuck in a rut for some time.
Documents released Tuesday provided insights into the Fed’s historic decision to ratchet down its rate to near zero from 1 percent at its Dec. 15-16 meeting.
Despite the aggressive action, “the economic outlook would remain weak for a time and the downside risks to economic activity would be substantial,” according to the Fed document.
