US Fed cuts, but not deep enough

Investors on Wall Street expressed their disappointment that the US Federal Reserve only cut interest rates by 0.25 per cent by selling stocks heavily. However the Fed has left the door open for further interest rate reductions by saying that it “will continue to assess the effects of financial and other developments on economic prospects and will act as needed”. Chief investment strategist at investment management firm Atlantic Trust, Alfred Kugel, said he wondered which economy the Fed was looking at and what they were thinking about when they made their decision and that the failure to stimulate the economy more aggressively has increased the risk of a US recession.