Fed makes another cut

Control your excitement...

Control your excitement...

In a further attempt to stimulate the lifeless US economy, the Federal Reserve made its seventh cut in interest rates since January. The Federal Open Market Committee shaved a further 3.5 per cent, or 25 basis points, in a move that was widely expected by investors. Cutting the Federal interest rate will bring down the cost of credit for business and consumers. Alan Greenspan's intention is to kick-start the economy by creating demand although changes such as this can take months to impact. The cut didn't do much to boost the markets, though and the Nasdaq closed 2.66 per cent down overnight. Notably, Amazon took a hit of 4.9 per cent by close. This uninspiring response was mirrored this morning in Europe, with the FTSE 100, and the FTSE TechMark dipping ever so slightly into the red. In Germany the Neuer Markt followed suit, slipping 0.67 per cent.