Federal Reserve cuts rates to lowest since 1961

UNITED STATES - Struggling to reverse the slide in the U.S. economy, or at least to slow it, the Federal Reserve cut short-term interest rates on Tuesday by half a percentage point, to 2 percent, the lowest level since the 1960s.

In a statement explaining the rate cut, the Fed's policy-makers said that "heightened uncertainty and concerns about a deterioration in business conditions both here and abroad are damping economic activity."

Wall Street analysts interpreted the half-point cut as deter