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US 'going to be just fine'

Updated on 18 March 2008

By Sarah Smith

Bush repeats his mantra, saying "in the long term we're going to be just fine," as America's central bank cuts rates by three quarters of a per cent.

Following the US treasury secretary's admission that the US economy was facing a "sharp decline", the Federal Reserve reduced interest rates by three quarters of a per cent to two and a quarter per cent in the hope of avoiding recession.

It's the fifth rate cut since the start of the so-called credit crunch, in which banks have found it more difficult to secure funding.

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