IBD's Top 10.(A)(IBD's Top 10 1-5)

Fed Cuts Rates 1/2-Point

In Effort To Boost Economy

1That brought the fed funds target rate to 5.50%. The discount rate also was cut by a half-point, to 5%. It was the second rate cut this month. The Fed surprised markets Jan. 3 by cutting the fed funds rate a half-point in between meetings of the Fed policy-making arm. Experts say more cuts will be seen if the economy weakens further. In 1999, the Fed kicked up interest rates 175 basis points w

ith six rate hikes. Then, an overheating economy was the concern. More on this page

Economy Slowed Sharply,Fourth-Quarter Data Show

2Gross domestic product, the value of all goods and services produced in the U.S., grew only at an annualized 1.4%. It was the slowest growth in 5 1/2 yearsand in stark contrast with white-hot growth earlier in the year. In the secondquarter the economy grew at a 5.6% pace. Capital spending dipped, a sign businesses are scaling back. Some analysts say a recession has already begun. Many expect more rate cuts. More on this page

Nasdaq Dips, Dow Boring