Fed cuts rates despite strong growth

The Federal Open Market Committee (FOMC) decided on Wednesday to cut the federal funds rate by 25 basis points to 4.5% in spite of better-than-expected economic growth for the third quarter.

Department of Commerce data released earlier on Wednesday revealed GDP grew by 3.9% in the third quarter, despite a bigger drag from the poor performance of the housing market than in either of the first or second quarters. Unsurprisingly, given the low value of the dollar, a massive boost came from expor