Although the Federal Reserve next scheduled meeting was on Tuesday, they decided to call an early emergency weekend meeting on Sunday March 16th, 2008. During this emergency meeting three main new ideas were proposed and put into effect.
First of all, the Federal Reserve has decided to cut its lending rate to banks from 3.5% to 3.25%. This move was done in order to aid the ailing economy and perhaps even pave the way to some economic growth.
Another decision that was made final was a new lending program that goes in effect Monday March 17th, 2008, that will lend money to bigger firms. This new lending program will start for at least six months.
The last decision made during this meeting was the sale of Bear Stearn, an investment bank that has been in a poor condition, to JPMorgan Chase. Overall, with the new week beginning, new changes have also been made. One look at these new changes hopes for much needed economic prosperity on the way.