Click to play videoWashington: The US Federal Reserve has slashed its key interest rate to nearly zero for the first time to battle recession Wall Street rallied on the news of that, on Tuesday.
The markets soared on Tuesday after the Federal Reserve cut a key short-term interest rate more than expected.
The DOW jumped three hundred and 59 points, while the NASDAQ and the S&P 500 closed up over five per cent.
The Fed slashed the federal funds rate to a record low but did not set an exact target.
Instead, policy-makers establised a range from zero to a quarter of a per cent. The previous rate stood at one per cent.
This is the first time the central bank has cut rates below that mark in another effort to stimulate the economy.
Earlier Tuesday, the Labor Department reported the Consumer Price Index - its key inflation measure - fell by a record one point seven percent in November.
That's due mainly to a steep drop in energy prices, a further sign that consumers have dramatically shifted their spending habits in the last few months.
Electronics seller in the US, says it will offer buyouts to four thousand corporate employees due to the worsening sales environment.
Best Buy also said layoffs may be required, depending on the outcome of the voluntary program.
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