US Federal Reserve slashes interest rates

The US Federal Reserve on Tuesday slashed interest rates to an unprecedented "target range" of 0 to 0.25 percent - an historic low in a dramatic effort to rescue the US from a prolonged and deep recession.

The US Federal Reserve on Tuesday slashed interest rates to an unprecedented "target range" of 0 to 0.25 percent - an historic low in a dramatic effort to rescue the US from a prolonged and deep recession.

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The drop in the federal funds rate from its current level of one percent was a unanimous decision by the US central bank's governing committee board, which said the economy has continued to deteriorate over the last few months.

The Fed has never before created a range for its benchmark interest rate. The US recession would require "exceptionally low levels of the federal funds rate for some time", the Fed said in a statement.