The Federal Reserve has lowered the benchmark interest rate by half a percentage point amidst news of a new government plan to assist Americans facing foreclosure on their homes. The rate cut drops it to its lowest point since the bursting of the dot-com bubble in 2003. Meanwhile, the Washington Post reports Treasury officials are close to finalizing a $40 billion mortgage bailout to assist up to three million struggling homeowners. Banks or other lenders would agree to reduce monthly payments. In return, the government would guarantee compensation for a portion of any losses if the borrower defaults on a revised loan.