US interest rates slashed to 1%

[manojjonam10]

The Federal Reserve has cut its key interest rate from 1.5% to 1% in a widely expected move, as it aims to avoid a possible US recession.

Earlier this month the Fed cut rates from 2% to 1.5% in an emergency move, which was co-ordinated with five other central banks.

[DianaR]

With interest rates being slashed so much, where is the incentive for the average person to save?

When you have to choose between heating a home, your commute to work, and putting food on the table, saving money at an interest rate of under 5% seems a little counter productive!

Is it just me?

[Petra Filiz]

As of the situation

Emerging economies

South Africa, Brazil and India yesterday blamed western "speculators" yesterday for creating the crisis that endangered emerging economies and called for reform of the institutions of global governance to reflect their growing economic clout. At a summit in Delhi the countries said they were reeling from the credit crunch - which they blamed on the mistakes and greed of the wealthier world. "We run the risk of being victims of a financial crisis generated by rich countries," said Luiz Inácio Lula da Silva, Brazil's president.



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