US rate cut may be last throw in monetary easing

The US central bank has delivered a larger than expected interest rate cut of 50 basis points in the hope it will be the final prop the economy needs. The Open Market Committee of the Federal Reserve Board lowered its target for the Federal funds rate to 1.25%, the lowest level since 1958, to help the economy through what it described as a 'soft spot'. It is the 12th time the Fed has cut interest rates since the current round of easing began in January 2001, before which the rate was 6.5%. In a statement announcing the decision, the Fed said it continues to believe an accommodative stan...