Fed cuts rate to virtually zero

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 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.

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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.