Financial Times FT.com

Wall Street buoyed by Fed rate decision

By Michael Mackenzie and Chris Bryant in New York

Published: October 31 2007 13:04 | Last updated: October 31 2007 20:33

US shares surged higher on Wednesday after the Federal Reserve cut interest rates by a quarter point.

The Federal Open Market Committee’s decision to cut both the fed funds rate and the discount rate by 25 basis appeared to satisfy the market. Shares fell into negative territory immediately after the decision but then soared above previous highs for the day as traders received the news most had expected.

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