Fed shocks with half point but signals easing over

US - The U.S. Federal Reserve on Wednesday slashed interest rates by a sharp half percentage point to new four-decade lows to try to reignite the recovery, but signalled it planned no more cuts any time soon.

By CentralBankNet's Editor, Jeremy Dyer.

The large drop in borrowing costs startled financial markets expecting a more modest cut Reuters reported.

The central bank's policymakers delivered a second surprise by indicating they are likely to stand pat after the latest reduction, saying econo