The Federal Reserve made another quarter of a point rate cut yesterday, bringing the target Fed Funds rate down to 2%. This makes 3.25% the Fed has shaved off the rate since last summer.

Last week we concentrated on the outlook for domestic UK economic activity ahead of the release of the first stab at UK real gross domestic product (GDP).

Is the U.S. Fed done cutting rates? The commodities market seems to think so. Gold, platinum, palladium and silver all fell by the end of New York trading. Even oil was off its all-time highs though still above US$115.

Being unable to fill the top job at the central bank for three weeks during a global credit crisis doesn’t exactly inspire confidence. So the news that the Bank of Japan has finally appointed a new governor, Masaaki Shirakawa “should give a great deal of relief to the market”, as one economist said.