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US Federal Reserve slashes rates
by Rachel Nixon | March 18, 2008 at 03:29 pm | 268 views | 1 comment
Amid concerns over the state of the US economy and jittery financial markets, the US Federal Reserve has cut interest rates by three quarters of a percentage point.
The central bank lowered rates to 2.25% from 3%, but the cut was smaller than financial markets had expected.
Many economists believe the US economy is already in a recession.
The Fed has taken strong action this week to avert a financial panic after investment bank Bear Stearns was forced into a fire sale to avoid collapse.
US Treasury Secretary Henry Paulson admitted earlier on Tuesday that the US economy was facing a "sharp decline" at the moment, but hoped for a recovery later in the year.
The Fed has now lowered rates six times since mid-September in a bid to boost the economy, which is reeling from the credit crisis that was triggered by a slump in the US housing market.
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March 18, 2008 at 03:29 pm by Rachel Nixon, 268 views, 1 comment
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Comments (1)
at 19:59 on March 18th, 2008
Get ready to flush your US dollars. It's like putting your finger in the dyke. the Fed has nothing left to do but panic!