The US Federal Reserve has set key interest rates to a record low zero to 0.25% in a desperate bid to stimulate the US economy which is looking increaingly sick

Rates are likely to remain this low for quite some time, the Fed stated.

The cut brings the federal funds rate to the lowest level since July 1954.

Wall Street rallied after the announcement, whilst oil dropped 2% to $US44 a barrel

The Fed has also stated that it will expand purchases of debt issued by mortgage agencies to support the housing market in it’s efforts to promote the resumption of sustainable economic growth and to preserve price stability

Simon Turner

More information: The Federal Reserves statement.

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