Fed rate cut sought by Wall Street would have only limited impact on housing, banking sectors

The Federal Reserve's cut of a key interest rate Wednesday is unlikely to boost hard-hit banks and homebuilders much in the near term, analysts say.

The Fed policymaking committee approved cutting a key short-term rate by a quarter percentage point Wednesday to help the economy get through a deeper-than-expected housing slump and credit crunch that accelerated in August. Shares of major national banks and homebuilders fell on the news.

The Fed's decision comes amid widespread anxiety among investors that the housing slump and soaring oil prices will stall consumer spending and drag the economy into a recession. The Fed said in a statement that the …