Fed cuts interest rate by 0.75 points
Last Updated: Tuesday, December 16, 2008
CBC News

The U.S. Federal Reserve has cut the country's short-term interest rate by three-quarters of a percentage point to a target range of zero to 0.25 per cent.

That is the lowest level on record for the United States.

In announcing the cut Tuesday, the Fed said U.S. labour and market conditions, consumer spending, business investment and industrial production are all falling.

"Financial markets remain quite strained and credit conditions tight. Overall, the outlook for economic activity has weakened further."

The economy is so bad that the rock-bottom rate is likely to continue for some time, the central bank said.
maladroit Reviewed by maladroit on . interest rates cut to save the economy Fed cuts interest rate by 0.75 points Last Updated: Tuesday, December 16, 2008 CBC News The U.S. Federal Reserve has cut the country's short-term interest rate by three-quarters of a percentage point to a target range of zero to 0.25 per cent. That is the lowest level on record for the United States. In announcing the cut Tuesday, the Fed said U.S. labour and market conditions, consumer spending, business investment and industrial production are all falling. Rating: 5