US Fed Again Cuts RatesAs expected, the US central bank, the Federal Reserve, has cut interest rates for the fifth time this year by 0.5%.At 4%, the US benchmark lending rate is now at the lowest it has been for seven years. The risks are weighted mainly toward conditions that may generate economic weakness in the foreseeable future The move by Fed chairman Alan Greenspan was designed to bolster the nation's flagging economy by lowering borrowing costs and encouraging consumers to spend. And in a key statement accompanying its decision, the Fed also hinted that more rate reductions could be on the way. "The risks are weighted mainly toward conditions that may generate economic weakness in the foreseeable future," it said. |
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