The US Fed today established a target range for the federal funds rate of 0 to 0.25%, effectively cutting its key rate for overnight lending to banks by between 0.75% and 1%.
- The Federal Reserve pulled out all the stops in its campaign to save the U.S. economy today, slashing interest rates to just about zero and promising to try an array of new economic measures to stimulate spending.
- North American equity markets have rocketed on the news, with the Dow up 360 points to 8925+ and the TSX up 260 to 8725+.
- The $US is significantly weaker against all major currencies.
Gold prices broke through $850 on the news and are trading at $857.50 on the spot market.