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US cuts key interest rate by 0.75%
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Source: CCTV.com | 01-23-2008 09:02
The US Federal Reserve slashed the benchmark federal funds rate by 75 basis points Tuesday.
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| The US Federal Reserve slashed the benchmark federal funds rate by 75basis points Tuesday.(CCTV.com) |
The rate cut from 4.25 percent down to 3.5 percent marks the biggest reduction in more than 23 years.
It's seen as an emergency bid by the Fed to head off a US economic recession and halt a global rout in stocks.
Meanwhile, the Fed has also lowered the discount rate it charges on direct loans to banks to four percent.
The Fed has signaled it's ready to lower rates further to deal with "appreciable" downside risks to economic growth.
Editor:Zhang Pengfei
