Financial Times FT.com

Fed slashes rates

Published: January 22 2008 14:23 | Last updated: January 22 2008 20:18

Ben Bernanke had a holiday weekend to watch the meltdown in global equity markets and to panic about how the storm would hit the US. Rather than wait, the Federal Reserve chairman acted pre-emptively, bringing forward the aggressive 75 basis point interest rate cut that would otherwise have arrived next week.

US leads rates lowerThe biggest inter-meeting rate cut in Fed history served as a circuit breaker against the threat of a vicious cycle down in the markets. For now.

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