Business | Economy
US Federal Reserve cuts key interest rate by 3/4 point
The Federal Reserve on Tuesday cut a key interest rate by three-fourths of a percentage point, moving aggressively to contain a credit crisis threatening to push the US into a severe recession.
- Agencies
- Published: 22:31 March 18, 2008
- Brokers work on the trading desk at ICAP following the Federal Reserve rate announcement on Tuesday, in Jersey City, N.J.
- Image Credit: AP
Washington: The Federal Reserve on Tuesday cut a key interest rate by three-fourths of a percentage point, moving aggressively to contain a credit crisis threatening to push the US into a severe recession.
The Fed's action takes the bellwether federal funds rate to 2.25 per cent, the lowest since February 2005, and comes two days after the central bank announced the latest in a series of emergency measures to stem a fast-spreading global financial crisis.
Many in financial markets had expected the Fed to chop the overnight rate by a full point.
The Fed has now cut rates by 3 percentage points since mid-September, including 2 points since the start of the year.
In recent days, the central bank has also unveiled steps not used since the Great Depression to ensure financial institutions have access to liquid funds.
Share this article
Related Articles
-
IMF sees risk of financial contagion
IMF sees risk of global financial contagion
-
Bush plays economic cheerleader as uncertainty grips America
Bush plays economic cheerleader as uncertainty grips America
-
Fed cuts will increase pressure on Gulf
Fed rate cuts will increase pressure on Gulf countries
-
Synchronising global recession
Fed policies could pave way to synchronised global recession
-
Global stocks rebound from Monday
Global stocks make a comeback from Monday
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
Global crisis won't deter Dubai's ambition: Mohammad
Dubai's economy was built on strong foundations and its success is based on diversified economy, says Shaikh Mohammad.
-
Pizzazz on the palm: A Nikki Bisiker project
Bright, bold and ultra glam are the top notes of this apartment in The Palm Jumeirah's beautiful marina
-
flydubai starts service to Sudanese capital
Dubai's first low cost airline, celebrated its eighth inaugural flight in less than six months
