Central Banks Announce Coordinated Rate Cut

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"Who has the world economy on his speed dial? This guy." Photo: Getty Images

After yesterday's afternoon collapse, the Federal Reserve came through on promises to reduce rates this morning, announcing a half-percent cut. At the same time, the Bank of England, European Central Bank, and the central banks of Canada, Switzerland, China, and Sweden announced rate cuts in a broad move to stave off a (further) global economic crisis. “The committee took this action in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures,” the Fed said in a statement after a unanimous vote for the measure. Already European markets are reflecting the move and are stemming losses, and the S&P 500 futures index indicates U.S. markets will open up 2 percent.

Central Banks Coordinate Cut in Rates [NYT]