WASHINGTON, Dec 16: The Federal Reserve slashed its base lending rate on Tuesday from 1 per cent to virtually zero, saying its target federal funds rate would be in a range of zero to 0.25 per cent.

The unprecedented rate announced by the Federal Open Market Committee (FOMC) is aimed at combating deflation and a crippling global credit crunch.

The Fed also said it would take other steps to stimulate lending and economic activity, including large purchases of mortgage securities to help unblock credit.—AFP