Fed Chairman Ben Bernanke and all but one of his colleagues agreed to lower the federal funds rate by one-quarter percentage point to 4.50 percent at the end of a two-day meeting.

The funds rate affects many other interest rates charged to millions of individuals and businesses and is the Fed's most potent tool for influencing economic activity.

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NEW YORK (AP) — Wall Street bounded higher Wednesday after the Federal Reserve assuaged some of investors' fears about a sinking economy, stating that risks to the financial markets from the summer's credit crises have eased.

The Dow Jones industrial average gained more than 130 points on the day.

Stocks initially zigzagged after the Fed lowered interest rates as expected because some investors balked at the notion that the Fed might not lower rates again at its December meeting.

But investors eventually appeared relieved that the Fed's comments about the inflation signaled the central bank was able to return to somewhat more parochial worries and focus less about upheaval in the credit markets than when it met last month.

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WASHINGTON (AP) — The economy picked up speed in the summer, growing at a brisk 3.9 percent pace, the fastest in 1 1/2 years and an impressive performance even as a credit crunch plunged the housing market deeper into turmoil.

The latest snapshot of the country's economic health, released by the Commerce Department on Wednesday, suggested the economy is proving resilient and holding up well despite strains in the housing and credit markets. Those problems intensified during the third quarter and rocked Wall Street.

A second report from the department showed construction spending rose 0.3 percent in September, the best showing in four months.

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SAN FRANCISCO (AP) — Google Inc.'s stock price barreled through $700 for the first time Wednesday, propelled by a belief that the Internet search leader will become even more profitable as it plants its products and services in new markets.

The Mountain View-based company's shares gained $12.23 to finish at a new peak of $707. It took less than a month for the stock to leap from $600 to $700, building upon a fervor that has lifted Google's market value by 34 percent since mid-September.

During that 6›-week stretch, Google has created an additional $55 billion in shareholder wealth. That dwarfs the total $42 billion market value of another Internet icon, Yahoo Inc., which had a 4-year head start on Google.

Through the first 10 months of this year, Google's stock has risen by 54 percent from 2006's closing price of $460.48. The Standard & Poor's 500 index, which includes Google, has gained 9 percent during the same period.

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NEW YORK (AP) — Oil futures soared again Wednesday to a new record near $95 a barrel after the government reported another unexpected drop in crude oil inventories and the Federal Reserve cut interest rates by a quarter point.

Interest rate cuts generally support oil prices because they tend to send the dollar downward; the dollar is already at a record low against the euro. Oil futures have been driven to record levels in recent months partly because they offer a hedge against a weak dollar.

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WASHINGTON (AP) — Federal regulators on Wednesday approved a rule that would ban exclusive agreements that cable television operators have with apartment buildings, opening up competition for other video providers that could eventually lead to lower prices.

The Federal Communications Commission unanimously approved the change, which Chairman Kevin Martin said would help lower cable rates for millions of subscribers who live in apartment buildings and other multi-unit dwellings, or about 25 million households. He said the move would particularly help minorities who disproportionately live in multi-unit dwellings.

The rule would prohibit cable companies, such as Comcast Corp. and Time Warner Cable Inc., from enforcing existing exclusive cable TV contracts with apartment managers and allow telecommunications companies, such as Verizon Communications Inc. and AT&T Inc., to offer video services along with high-speed Internet access and phone service.

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DETROIT (AP) — Chrysler LLC began laying off thousands of salaried workers Wednesday as part of an effort to slash costs in the company's new era of private ownership, a spokesman said.

The cuts won't end there. On Thursday, Chrysler planned to announce the elimination of third shifts at the Toledo North plant in Ohio and the Belvidere plant in Illinois in the first quarter of 2008, according to two congressional aides with knowledge of the announcement. They spoke on condition of anonymity because they were not authorized to speak publicly.

The decisions will eliminate 750 jobs in the Toledo plant, which makes the Jeep Liberty and Dodge Nitro, and 1,000 jobs at the Belvidere plant, where Chrysler assembles the Dodge Caliber, Jeep Compass and Jeep Patriot.

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CHICAGO (AP) — Insurance brokerage Aon Corp., facing fierce competition and falling rates, said Wednesday it will cut 2,700 jobs as part of a restructuring plan that will eventually save it about $240 million a year.

The elimination of about 6 percent of its work force was announced as Aon reported third-quarter net earnings of $204 million, up 92 percent from a year earlier. But the industry has been struggling to cope with three straight years of sinking insurance rates, and Aon's biggest competitor Marsh & McLennan also is restructuring and laying off employees.

Aon, which will record related pretax charges of about $360 million for the restructuring, said it needed to slash expenses.

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NEW YORK (AP) — MasterCard Inc.'s third-quarter profit blew past Wall Street's expectations, jumping 63 percent in a powerful reminder that many people around the world are still making money and finding ways to spend it.

The credit-card processor's results — boosted by sharp increases in spending overseas and moderate growth in the United States — drove shares up more than 20 percent Wednesday to an all-time high.