The U.S. central bank has cut the key interest rate by three-quarters of one percent, in an effort to boost the troubled U.S. economy and stop a global stock market sell-off.
Federal Reserve officials said in a statement on Tuesday they cut rates to three-point-five percent to ease tight credit to cope with a weakening economic outlook.
President Bush says he is optimistic that the administration and Congress can "find common ground" and quickly agree on a proposed 145-billion dollar package of measures to stimulate the economy. He spoke at a White House meeting with key congressional leaders.
Stock markets around the world have declined recently as investors worry that a slowing U.S. economy could hurt businesses in the many nations that trade with the United States.