Federal Reserve Cut Interest Rate To 0 - 0.25%

rate cut sampai 0.25% siot..lagi rendah dari jepun 0.3% Dec. 16 (Bloomberg) -- The Federal Reserve cut the main U.S. interest rate to as low as zero for the first time and shifted its focus to the amount and type of debt it buys, seeking to revive credit and end the longest slump in a quarter- century. The Fed "will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability," the Federal Open Market Committee said today in a statement in Washington. "Weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time" Stocks soared, while Treasury notes rallied in anticipation the Fed will buy the securities to reduce borrowing costs for consumers and companies. Nine rate cuts in the prior 14 months and $1.4 trillion in emergency lending had failed to reverse the economic downturn. The Fed said today it will target a federal funds rate of between zero and 0.25 percent, a reduction from the 1 percent level that the Fed failed to hit.