Help on the Way?

" Brit Hume in a season full of bad economic news today offered a dose of the positive makes it. Wall Street celebrated as a Federal Reserve cut an important interest rate. And administration continued to signal that a bailout of American auto makers is indeed on the way -- White House correspondent Bret Baier reports."

" The -- skyrocketed closing more than 350 points up after an aggressive and unique move by the Federal Reserve. The Central Bank cut the federal funds rate the interest rate banks charge each other by more than three quarters of a percentage point. That bankers rate is now -- range from zero to a quarter of a point the lowest on record. That rate is how banks at the prime rate for regular borrowers this means credit card rates will be dropping again soon and mortgage rates are expected to follow. The action came after the Labor Department reported that consumer prices fell one point 7% in November the largest one month decline in 61 years. Following prices are good thing for consumers in the short run. But long term they can trigger companies to scale back cut jobs and can cause he continuing downward spiral. In this economic environment White House officials were pressed for a timeframe on bailing out the Big Three auto makers."

" We -- do it. If we decide to do them do it and the."

" It's time that we think that is right but there's no hiding in the direction the administration is now heading Vice President Cheney called into Rush Limbaugh's radio program."

" That the automobile industry goes belly up now. There's the concern that that would -- you know major shock the system."

" In an exclusive interview Treasury Secretary Henry Paulson indicated the administration."

" Has time to act but not much."

" Obviously I can look at the calendar like you can and I know. I know January 20 is approaching sirens approaching. Are you worried if the decision finally is that you tap into this 700 billion dollar pot for the auto makers. That somehow it opens the door to a number of other industries well that that was obviously very concerned this is a very important industry. These jobs are important and the failure is not something that's an attractive proposition here not an option it's not something we want a conflict."

" In other economic news the Commerce Department reported today that construction of new homes fell in November by eighteen point 9%. The biggest drop in a quarter of the century it's now the slowest construction pace since 1959. As fox first reported the Treasury Department is working on a plan to reduce mortgage rates for new homeowners to four point 5%. Through mortgage giants Fannie Mae and Freddie Mac. -- Terry Paulson said those plans are still in the works."

" That would be a very powerful. Very powerful thing for homeowners. And for financial institutions and for our economy. To be able to to have a mortgage rates dropped even further I can't think of any single thing that would be more hope more helpful."

" Paulson called the potentially very big program and if treasury decides to launch it. Official we'll have to get the incoming Obama team to sign off first some analysts though say with the Fed's moves today and a promise by the Fed to use all available tools necessary. The rate on a thirty year fixed mortgage could fall. Very soon to four and three quarters. Even without treasury action. Bret Bret thank you."