US Fed Cuts Interest Rate by 25 Basis Point

The Federal Reserve, cut a key interest rate by a quarter-point on Wednesday, but signaled that may be all the rate relief the economy needs right now.

The central bank lowered the federal funds rate to 4.5 percent, as had been expected. But while financial markets had hoped for a clear signal that further rate cuts could be forthcoming, the central bank instead signaled that the September and October rate cuts may be it.

Oil futures soared again Wednesday to a new record near $95 a barrel after the government reported another unexpected drop in crude oil inventories and the Federal Reserve cut interest rates by a quarter point.

Asian markets expected to rise after the US rate cuts announcement and strong performance in Wall Street.