Fed could make 'substantial' cuts if US weakens

In the minutes of its December 11 meeting, the Fed explained the nine votes to one decision to cut interest rates by 25 basis points to 4.25%. It says the policy easing was necessary to help promote maximum sustainable growth and provide additional insurance against risks. Although the Fed noted unfavourable credit market conditions could lead to a “substantial further easing of policy”, it also says conditions could improve more rapidly than members expect and a rate cut reversal may become appropriate. The only committee member to vote against the 25 basis point cut was Federal Reserve...