UK economists assess Fed cut

UK economists have welcomed the Federal Reserve's decision to reduce interest rates, if a little surp...

UK economists have welcomed the Federal Reserve’s decision to reduce interest rates, if a little surprised by the cut, but are divided in their view of what this means for the economic future of the US and the UK. Yesterday it was announced that the Fed had decided to cut rates by 50 basis points from 5.25% to 4.75%. A cut of 25bp was widely expected by analysts around the world as concerns for the US economy were heightened by the credit crunch, inflation and sub-prime lending. Swip’s chief economist thinks it is a positive move by the Fed and should help the declining housing market in...