BBC: The Federal Reserve has cut its key interest rate from 2.25% to 2.0% as it aims to avoid a possible US recession.
It is the seventh rate cut since last September, when the federal funds rate was cut from 5.25% to 4.75%.
Opinion was divided about whether the Federal Reserve's statement indicated that this would be the last cut in interest rates.
The economy has been hit by a housing market downturn and some analysts believe it is already in recession.
"This the seventh cut from the Fed since September and the committee will obviously be hoping it can be the last," said BBC economics editor Stephanie Flanders.
"The fact that today's GDP figures showed positive growth in the first quarter offers some grounds for hoping that the US will not see two quarters of negative growth this year, at least if the fiscal stimulus package works as intended and boosts spending over the summer." Further Cut in US Interest Rates >>>
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