May 01, 2008	Thursday	Rabi-us-Sani 24, 1429

WASHINGTON, April 30: The Federal Reserve on Wednesday cut its federal funds rate by a quarter point to 2.0 per cent in the latest in a series of moves to fire up a lagging US economy.

The Federal Open Market Committee said financial markets remain under stress and that there is considerable uncertainty about the inflation outlook.

The central bank has slashed its key lending rate by 3.25 percentage points since September in the face of a US housing meltdown and global credit squeeze.

“Recent information indicates that economic activity remains weak,” the FOMC said.

The vote was 8-2 with two dissenting members calling for no change in rates. The central bank said it also decided to lower its discount rate for direct bank loans by a quarter point to 2.25pc.

The panel headed by Fed chairman Ben Bernanke appeared to leave its options open for future actions.—AFP