US Fed Slashes Lending Rate

US Fed slashes lending rate Tuesday, 16 December 2008 19:33

The US Federal Reserve has slashed its base lending rate from 1.0% to virtually zero, saying its target federal funds rate would be a range of zero to 0.25%.

The unprecedented low rate announced by the Federal Open Market Committee is aimed at fighting off deflation and a crippling global credit crunch.

Additionally, the Fed said it would take other steps to stimulate lending and economic activity, including large purchases of mortgage securities to help unblock credit.