to some people, so the market is down right now almost 200 points!!
Published: December 11 2007 19:17 | Last updated: December 11 2007 19:17
The Federal Reserve on Tuesday cut interest rates by 25 basis points in an effort to offset renewed strain in the credit markets and keep the US economy out of recession.
The rate cut was smaller than some in the markets had hoped for. However, it indicates that the US central bank is aware of the increased risk to growth following the relapse in the financial system, while remaining very aware of the risks to inflation.
The Fed also sees some tentative signs that consumer spending is softer than it expected.
However, the US central bank believes that a resilient jobs market should help sustain a moderate level of consumer spending.
