The US Federal Reserve has cut its main interest rate by a quarter percentage point to 4.25% in an effort to stave off an economic downturn.
The central bank's Federal Open Market Committee voted 9-1 in favour of the action, with one member supporting a half-point reduction.
'Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending,' the panel said.
It added that strains in financial markets had increased in recent weeks. The committee said the cut should help promote 'moderate growth'.
