Rather than wait for its meeting next week, the US Federal Reserve implemented an emergency cut of 75 basis points on Tuesday. This took its key interest rate, the federal funds rate, down to 3.5 per cent compared with 5.25 per cent just six months ago.

Yet what would have been interpreted a just few days ago as a bold policy measure to get ahead of the curve is now seen by some as an insufficient attempt to play catch-up with a rapidly deteriorating situation.