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WASHINGTON, Sept 18: The Federal Reserve on Tuesday cut its base federal funds rate a half point to 4.75 per cent in the face of housing and credit market stress.
The Federal Open Market Committee, in a unanimous decision after a one-day meeting, also cut its discount rate for direct central bank loans 50 basis points to 5.25 per cent.
“Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time,” the central bank said in a statement. —AFP
