Financial Times FT.com

Fed hints at pause as rates cut to 2%

By Krishna Guha in Washington

Published: April 30 2008 19:16 | Last updated: May 1 2008 00:11

The Federal Reserve cut interest rates by a quarter percentage point to 2 per cent on Wednesday and signalled its preference to pause at its next meeting in June.

The suggestion of a pause came by way of the Fed dropping its explicit focus on the “downside risks” to growth. It also dropped a pledge to act “in a timely manner” and highlighted the “substantial easing” of monetary policy that has already taken place.

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