Fed cuts rates by half a point

The Federal Reserve cut interest rates by 50 basis points at its Tuesday meeting in a bid to limit the impact of recent financial turmoil on the economy.

The Fed said: "Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time."

The decision lowers the cost of borrowing to 4.75% and is the Fed's first move of more than quarter point since November 2