Wondering if the Federal Reserve’s rate cut will affect car loans, credit card rates and more? January 25, 2008 · The Federal Reserve’s decision to cut a key interest rate this week was designed to help jolt the sagging economy. He tells Michele Norris that a Fed cut to short-term interest rates doesn’t always affect long-term interest rates, but the bond market reacted positively to the surprising three-quarter-point drop at first and mortgage rates did go down. January 23, 2008 · The Federal Reserve’s decision on Tuesday to cut a key interest rate by three-quarters of a percentage point comes as fears of a recession grow. read more