The US Federal Reserve has cut interest rates for the second time in eight days in an effort to stimulate the flagging US economy.
The Fed cut the rate by 0.5% this evening.
On Tuesday of last week the US Federal Reserve bank dramatically slashed rates by 0.75%.
It followed that up with another cut bringing its key lending rate to just 3%.
The two reductions rank among the most abrupt rate cutting sprees in US modern history.
The Federal Reserve said the cuts should help to mitigate risks to economic activity, but it said despite its actions threats to growth remained.
It added that recent information indicated a deepening of the housing contraction as well as weakening employment figures.
Just hours before the Fed's decision the US Commerce Department reported economic growth was 0.6% in the fourth quarter of 2007 - half of what economists expected.
