Fed slashes rates by 0.75%

The Federal Reserve has slashed the US\' key interest rate by 0.75% from 1% to just 0.25%.

The board of governors of the Fed’s Federal Open Market Committee unanimously approved the cut and says it has established a target range of the Federal Funds rate of between 0 and 0.25%.

While inflationary pressures have eased it says that with over half a million people losing their jobs in November alone, economic activity has continued to weaken.

To combat the problem the Fed has pledged to employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability.

In particular, the FOMC anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.