Fed makes major rate cut
The U.S. Federal Reserve today made an emergency move by cutting a key interbank interest rate by three-quarters of a percentage point to stem major stock market sell-offs as fears of a U.S. recession grow.
The Fed said it was cutting the federal funds rate banks charge each other on overnight loans to 3.5 percent from 4.25 percent.
It was the biggest one-day move in 20 years. The Fed said it decided to move because of a weakening economic outlook.
U.S. stock market indexes are down 15 percent to 18 percent since October.
The Baltic Dry Index, which tracks shipping rates for bulk cargo ships, has dropped 40 percent in recent months, indicating that global production has slowed and that the U.S. slowdown is affecting economies around the world.
Fed makes major rate cut
