The United States Federal Reserve cut interest rate on Wednesday by half percentage to increase borrowing. New interest rate is 1%, lowest since June 2004. This is the 9th time Federal Reserve is cutting interest rate in last 13 months.
Even though market was anticipating a rate cut it failed to cheer the market as Dow Jones closed with 74 points loss.
After US Fed’s decision China also cut interest rate by .27 percent. Japan Central bank also hinted about a rate cut. South Korea has tied up with US Federal Reserve for $30 billion currency swap to overcome dollar shortage.
