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US federal reserve cuts rates to 4.75 per cent

The US central bank has made the move to cut rates to 4.75 per cent from 5.25 per cent amidst the sub-prime turmoil.

New Star Asset Management chief economist Simon Ward says: “The Federal Open Market Committee’s decision to lower the Fed funds and discount rates by 50 b.p. represents a bold attempt to forestall the negative economic impact of recent financial market dislocation.

“Visibility is low and there is a risk that the Fed has jumped the gun – current economic indicators remain consistent with expansion and market stresses were starting to abate before the surprise move. The consensus is convinced that further cuts will follow but a scenario of “one and done” should not be ruled out. Remember August 2005 in the UK?”

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Vertex has appointed two divisional directors to sit on its main operating board.Vertex Life Pensions and Distribution managing director David Child and Vertex Mortgages and Banking managing director David Edwards will join the main board, which is led by chief executive Richard Graham.Child is also managing director of The Exchange, which he joined in 2003 […]

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