Fed announces 0.25% rate-cut

Fed declared that it reduced the federal funds interest rate by 0.25% to 3.75% and the discount rate was also lowered by 0.25% to 3.25%. It is the sixth time that the US downgraded the interest rate.

Fed said in a statement that the US economy was dragged down by the decreasing corporate profitability and commercial capital expense, weak consumption and slackening overseas economy growth. Fed has downgraded the interest rate by 2.75% since early this year, the biggest rate-cut circle since 1982 when US suffered a 16-month economic recession.

Related stock : (NIL)