Fed cuts to 2%

The Federal Open Market Committee (FOMC) lowered rates by a quarter point on Wednesday.

"Recent information indicates that economic activity remains weak. Household and business spending has been subdued and labour markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters," the committee said.

The committee acknowledged that though readin