VOA标准英语10月-US Cuts Key Interest Rate to Stave Off Economic D

The Federal Reserve, the U.S. central bank, on Wednesday cut short-term interest rates in an effort to boost the slowing economy. VOA's Barry Wood reports it was the eighth cut in the overnight federal funds rate in the past year.
　

United States Federal Reserve Building in Washington, D.C. (File)

The action takes the fed funds rate to one percent, a rate well below inflation. The move is intended to stimulate¹ lending and make the cost of borrowing cheaper. Bank lending has been essentially² frozen for months due to a year-long credit squeeze that was triggered by defaults on sub-prime U.S. mortgage loans.

William Poole, a former governor of the Federal Reserve, says the Fed acted because economic activity has slowed dramatically.

"The economy has really hit a wall. Things are really dramatically weaker than they were just a month ago," Poole said on Bloomberg Television.

In its statement, the Fed said that economic growth had slowed markedly and that the economy faces more downside risks.

Poole says there may be additional rate cuts ahead.

"Yes, absolutely," he said. "Now the immediate³ question in the market and among economists⁴ will be, 'Do they [i.e., the Federal Reserve] go down some more - 75 basis points or 50? What happens when they get to 25 [i.e., a quarter-of-a-point federal funds rate? Does monetary⁵ policy have any room left to stimulate the economy?'"

Only three weeks ago the Federal Reserve, in coordinated⁶ rate cutting moves with European and Asian central banks, reduced short-term interest rates by half of a percent. One year ago, when the Fed was worried about inflation, the fed funds rate stood at 5.25 percent.

Experts say the speed and size of the rate cuts during the past year reveal how seriously the central bank views the global financial crisis. The last time short-term rates were this low was 2003, when the economy was recovering from recession. However, low interest rates have been blamed for the speculative⁷ frenzy⁸ in the housing sector⁹ - a bubble that burst early last year, sparking today's financial crisis.

Stock prices in New York fell on Wednesday with the Dow Jones Industrials losing 77 points to 8,988. Oil prices rallied nearly $5 to about $68 a barrel. And the U.S. dollar was lower against the yen¹⁰ and the euro.

1 stimulate   

vt.刺激，使兴奋；激励，使…振奋

参考例句：

• Your encouragement will stimulate me to further efforts.你的鼓励会激发我进一步努力。
• Success will stimulate the people for fresh efforts.成功能鼓舞人们去作新的努力。

2 essentially   

adv.本质上，实质上，基本上

参考例句：

• Really great men are essentially modest.真正的伟人大都很谦虚。
• She is an essentially selfish person.她本质上是个自私自利的人。

3 immediate   

adj.立即的；直接的，最接近的；紧靠的

参考例句：

• His immediate neighbours felt it their duty to call.他的近邻认为他们有责任去拜访。
• We declared ourselves for the immediate convocation of the meeting.我们主张立即召开这个会议。

4 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》

5 monetary   

adj.货币的，钱的；通货的；金融的；财政的

参考例句：

• The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
• Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。

6 coordinated   

adj.协调的

参考例句：

• The sound has to be coordinated with the picture. 声音必须和画面协调一致。
• The numerous existing statutes are complicated and poorly coordinated. 目前繁多的法令既十分复杂又缺乏快调。 来自英汉非文学 - 环境法 - 环境法

7 speculative   

adj.思索性的，暝想性的，推理的

参考例句：

• Much of our information is speculative.我们的许多信息是带推测性的。
• The report is highly speculative and should be ignored.那个报道推测的成分很大，不应理会。

8 frenzy   

n.疯狂，狂热，极度的激动

参考例句：

• He was able to work the young students up into a frenzy.他能激起青年学生的狂热。
• They were singing in a frenzy of joy.他们欣喜若狂地高声歌唱。

9 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

10 yen   

n. 日元；热望

参考例句：

• He wanted to convert his dollars into Japanese yen.他想将美元换成日币。
• He has a yen to be alone in a boat.他渴望独自呆在一条船上。