Fed in shock rate cut move to 0%

Central bank policymakers say they will consider other methods to help stimulate the US economy and prevent a deflationary spiral now they can no longer reduce interest rates. In little over a year, the key interest rate target for US banks has plummeted from 5.25% to today's figure of virtually zero. Rates were cut to 1% in November as the Fed tried to combat the fallout from the collapse of Lehman Brothers, which led to a number of other US banks approaching bankruptcy and a $500bn bail-out, and have now reached a record low. A statement from the Fed says: "The Committee anticipates...