Reuters just reported. It made no change to the Fed Funds Rate.
The Discount Rate - the rate the Fed charges its member banks for loans - was dropped from 6.25% down to 5.75%, to soothe investors concerns, making liquity for financial institutions cheaper and easier to obtain. Funds are seldom borrowed this way and when done they are on a short term basis, to meet temporary shortages in liquidity caused by disruptions in the market. It is meant to be used for situations just like what we are experiencing now.
The Fed Funds Rate, which has not been changed, is the interest rate which banks charge each other to lend part of the the balances they are required to hold at the Federal Reserve for an overnight period. There is much speculatation that this will be dropped when the Fed meets in October.
This will bring temporary, but not permanent relief to the current mortgage crisis. It may also have negative impact on the value of the US Dollar as it strips the Dollar of is current safe-haven status.