The US Federal Open Market Committe cuts rates by 0.25%
12 December 2007
The US Federal Open Market Committee (FOMC) cut interest rate by 0.25% down to 4.25%. US stocks fell sharply on the back of the announcement. The primary motivator for the rate cut was the FED's desire to support the US economy in an attempt to withstand tightenned credit and a prolonged housing slump. While the cut was widely anticipated, many analysts had expected a more aggresive reduction.