The US Federal Reserve Bank has cut the short term interest rates by 25 basis points which now stands at 4.5% on Wednesday mainly due to the slow economic growth of US.The discount rates has also been slashed to 5% presently.

The US markets were on a upswing after the announcement came.All the major indices including the Dow Jones,Nasdaq,the broader S&P 500 index was on a surge.The Indian share markets are reacting to this piece of news positively.The US markets want to maintain a moderate growth rate among concern of economic slow down.Market analyst are in a view that it will surely stabilise the financial markets.It has also come as breather to the ailing credit markets which have faced major losses in the recent days.The consumers are the happiest because now they can borrow at lesser rates.Meanwhile there are also good news coming in that the US economy has been growing at 3.9% in quarter 3,which is said to be the fastest in a year and a half.

Now lets see how the Indian markets are doing at this point of time.The Nifty has crossed the psychological barrier of 6,000 points today up by over 99-100 points at around 11 clock in the morning.Sensex is also up by 260 points and is hovering around 20,097 levels at the same time.Investors are bullish on the markets  in the near short term.

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