US Fed slash interest rates to record low

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The US Federal Reserve has cut interest rates today as widely expected as it fights off a deep and prolonged recession.

Rates have been slashed from 1% to 0.25%, its lowest level since records began over 50 years ago.

The cut was no surprise since recent figures revealed that US consumer spending has plummeted, while US industrial production dropped 0.6% in November, with manufacturing down 1.4%.

The Fed has made aggressive cuts since September last year, when rates stood at 5.25%.

The Fed warned in a statement today that “the outlook for economic activity has weakened further”.

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