FTSE falls 5% on gloomy Fed outlook

The FTSE 100 was 260 points, or 4.94%, lower at 5,030 as of 2pm, with miners bearing the brunt of the sell-off. Elsewhere, both the German Dax (down 4.6%) and the French Cac (down 5.3%) are significantly off as private investors are spooked by fresh recessionary concerns. It follows a stark warning about the US economy delivered by its own Federal Reserve last night. The Fed said the economy faces "significant downside risks" and that a number of problems won't be easily solved, including high unemployment and a depressed housing market. After a two-day meeting, the Fed also ann...