Fed slashes rates in shock move

The US Fed has cut interest rates to 3.5%, a shock three-quarters of a percentage point reduction. This was an emergency move, used for the first time since 2001 after stock markets tumbled from Hong Kong to London and the U.S. economy showed increasing signs that it's headed into a recession.

However, despite the attempt tostave off a US recession, the move failed to calm investors, with shares continuing sharp falls as Wall Street opened for trading today. This recession is already called the worst downturn of the post-war era.