Fed Cuts Key Rate One More Time

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WASHINGTON - The Federal Reserve trimmed one more quarter-point from the key interest rate Wednesday.

Feeling the Squeeze

As Americans are feeling the pinch in their pocketbooks, from the gas pump to the grocery store, Washington is scrambling to find a solution to the weak economy.

Click play to watch CBN News Reporter John Jessup's report and Pat Robertson's assessment afterwards.

 Analysts hope the rate cut by the Fed will help to alleviate some of the growing pressures Americans are feeling.

One woman said, "You are just wondering day to day, am I going to be working? You know biting your fingers and thinking, what's next?"

The quarter-point cut brings rates down three full percentage points from when the fed started its rate-slashing campaign in September to ease concerns over the credit crunch from the subprime mortgage mess.

And the latest numbers from the government - released this morning - confirmed the weak economy

The preliminary estimate showed that the economy grew at an annual rate of just six-tenths of one percent in the first quarter of this year - just the same as the end of 2007.

Today's numbers don't exactly show a recession, but they were just what analysts expected.

President Avoids the 'R' Word

On Tuesday, President Bush described the economy in terms of tough and difficult times, but he shied away from saying America is in a recession.

"The average person doesn't really care what we call it. The average person wants to know whether or not we know that they're paying higher gasoline prices and they're worried about staying in their homes. And i do understand that," the President said.

According to a new survey, 44-percent of Americans across all income levels say paying to fill up is a "serious problem." This comes as gas prices topped yet another record.

"I've never ever, ever paid a hundred dollars!" said one consumer.

Candidates Push Tax Holiday

The pain at the pump is now front and center of the political campaign.

John McCain and Hillary Clinton are backing a tax holiday that would erase federal taxes on gasoline during the summer driving season.

But Barack Obama - who favors a long-term fix - calls the idea a drop-in-the-bucket.

With consumer confidence low, and now inflationary pressures high, Americans are looking for any economic relief. And politicians are trying to find solutions to make voters happy.

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CBN News
John Jessup

John Jessup

CBN News Washington Correspondent

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