Fed slashes rates in shock move
The US Federal Reserve has cut interest rates to 3.5%, a shock three-quarters of a percentage point reduction. The Fed, the US central bank, said latest figures indicated a deepening of the country’s housing market slump and increased unemployment levels.
Global stocks rebounded with most European indexes closing higher, while Wall Street regained some ground.
One analyst said the Fed was “obviously panicked” by the threat of recession following Monday’s global share slide.
“Unfortunately they have no power to reverse what in my opinion is the worst post-war recession,” said Michael Metz, chief investment strategist at Oppenheimer in New York. Read more from bbc.co.uk