Fed cuts US rates by 0.75%

The cut made by prior to the stock market opening is seen as the Fed's attempt to shore up confidence in the US economy as stockmarkets around the world have taken a hammering. The US markets were closed for Martin Luther King Day and open again today (Tuesday). The Fed explained its decision as a reaction to data indicating the housing market slump was deepening and the labour market becoming softer. The cut could prompt the Bank of England to follow suit when it next decides on interest rates next month. It has also sparked a rapid market recovery with both the FTSE and the Dow Jon...