Fed cuts rate to virtually zero | business | Hindustan Times
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Fed cuts rate to virtually zero

business Updated: Dec 17, 2008 02:25 IST

The Federal Reserve slashed its base lending rate today from 1.0 per cent to virtually zero, saying its target federal funds rate would be a range of zero to 0.25 per cent.

The unprecedented low rate announced by the Federal Open Market Committee is aimed at fighting off deflation and a crippling global credit crunch.

Additionally, the Fed said it would take other steps to stimulate lending and economic activity, including large purchases of mortgage securities to help unblock credit.