Fed cuts interest rate again.

What impact will this have on the world?

The Federal Reserve, mixing its concern about the weak economy with worries about the rising cost of energy and food, reduced short-term interest rates Wednesday for the seventh time in seven months and left open the possibility of further reductions.

The Fed’s action, lowering short-term rates to 2 percent from 2.25 percent, followed new indications that the American economy remained fragile, expanding by 0.6 percent on an annualized basis in the first quarter, not an overall downturn that would have indication a full recession had begun.