More cuts expected as Fed drops rates again

The US Federal Reserve cut interest rates last week for the third time this year. The half percentage point reduction followed two cuts totalling one basis point in January and dropped the Federal funds overnight bank lending rate to 5%, its lowest level since mid-1999. Fed officials said falling stocks, a slump in US manufacturing and the slowing global economy had all contributed to the decision to reduce rates further. Observers see this latest move as a signal that the Fed will do more to revitalise the ailing economy if necessary and it did leave the door open for another rate cut ...