US Interest Rates Slashed to 1%
THE FEDERAL Reserve has slashed interest rates to 1% it has been announced in a move to avoid recession.
The Federal Reserve has cut its key interest rate from 1.5% to 1% in a widely expected move, as it aims to avoid a possible US recession.
Earlier this month the Fed cut rates from 2% to 1.5% in an emergency move, which was co-ordinated with five other central banks.
Interest rates have been slashed since September 2007, when the federal funds rate stood at 5.25%.
The 1% level was last seen between June 2003 and June 2004.
'Moderate economic growth'
The move is confirmation that inflation is no longer seen as the major threat to the US economy.