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World News

U.S. Federal Reserve makes surprise cut

The U.S. Federal Reserve cut a key interest rate by three-quarters of a percentage point Jan. 22. This is because of a global stock selloff caused by fears of a recession in the United States.

The cut in the federal funds rate, from 4.25 percent to 3.5 percent, was the biggest one-day rate change by the central bank since 1991, when the United States was trying to get out of a recession.

World markets are in a volatile state because of the cut. In Japan, the Nikkei 225 index rose 2 percent Jan. 23, after falling 9.3 percent since Jan. 21. (AP)

Shukan ST: Feb. 1, 2008

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World News U.S. Federal Reserve makes surprise cut The U.S. Federal Reserve cut a key interest rate by three-quarters of a percentage point Jan. 22. This is because of a global stock selloff caused by fears of a recession in the United States. The cut in the federal funds rate, from 4.25 percent to 3.5 percent, was the biggest one-day rate change by the central bank since 1991, when the United States was trying to get out of a recession. World markets are in a volatile state because of the cut. In Japan, the Nikkei 225 index rose 2 percent Jan. 23, after falling 9.3 percent since Jan. 21. (AP) Shukan ST: Feb. 1, 2008 (C) All rights reserved