Federal Reserve cut

The decision by the United States Federal Reserve to significantly cut interest rates could have implications for Jamaica’s financial sector.



The Fed has cut the interest rates to 3.5 percent representing what US based analysts say is a shocking three quarters of a percentage point reduction.



It’s believed that the move may have been triggered by the threat of a recession.



The Fed is reported as saying that the decision was influenced by a deepening of the US housing market slump and increased unemployment.



Economist Errol Gregory believes the cut in interest rates could initially benefit the Jamaican economy in terms of reduced interest rates on loans to the Government.