US

18/11/2008

October was another volatile month for the US stockmarket, as it was for stockmarkets around the world. At the beginning of the month, Congress passed the revised Troubled Asset Relief Plan (TARP), which provided relief to financial markets. Central banks were also forced into measures in an attempt to calm volatility in global markets, with coordinated interest rate cuts from the Federal Reserve, European Central Bank and Bank of England, which initially caused a slight rally in markets, before investors became nervous again amid mounting evidence of recession. The Fed responded by making a further interest rate cut at the end of the month, taking interest rates in the US to1%.

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