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The US Federal reserve this evening cut interest rates by a quarter point.
This is the 11th time this year the US Central Bank has eased the short-term lending rate in its prolonged campaign to reinvigorate activity in the world's largest economy.
The Fed funds rate, which governs overnight loans between banks, was already at a 40-year low. It now stands now at 1.75 per cent, leaving it still at its lowest level since 1961.
Many economists believe a recovery is in sight without more rate cuts, a view underlined by new data released yesterday.
Consumer sentiment as measured by the University of Michigan bounced higher for a third straight month in December.
Factory orders for costly and long-lasting durable goods also climbed strongly in October.
At the same time retail sales at US chain stores fell more than expected last week, dimming hopes that consumer spending could quickly lift the economy out of recession.
The Fed said the risks were still weighted towards slowdown in the economy.