Fed slashes U.S. interest rates in emergency move

WASHINGTON, Jan 22 (Reuters) – The U.S. Federal Reserve on Tuesday slashed benchmark U.S. interest rates by a hefty three-quarters of a percentage point in an emergency bid to lend support to a U.S. economy some fear is on the verge of recession.

The Fed’s action took the key federal funds rate, which governs overnight lending between banks down to 3.5 percent, its lowest level since September 2005. The Fed also lowered the discount rate it charges on direct loans to banks to 4 percent.