Fed cut rates.

In order to create liquidity pool in the economy,and to curb credit crunch in the economy, today fed announces another rate cut by 0.5 percent, thus now the offering rate is 1.0%. The rate cut clearly shows the gloomy outlook of the economy, with federal reserve giving out warning sirens and stating that, economic revival make take some time.

The current rate cut matches with the lowest rate cut ever carried out by federal reserve, the last time federal decreased the rate to 1% was in 2003-2004, which clearly triggered the subprime lending and resulted in the one of the largest financial turmoil in decades.

Thanks&Regards,
Mohit