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It wasn't quite as much as many in the markets expected, but it seemed to be enough to satisfy most. The Federal Reserve slashed key interest rates including the Fed Funds rate by 3-quarters of a point, to 2.25 percent, saying "Financial markets remain under considerable stress" That level of 2.25% is the lowest its been since February of 2005. The decision briefly slowed a strong rally in stocks, but the buying spree quickly resumed. The rate cut is part of the Fed's continuing efforts to keep the US out of a deep recession and keep the financial markets stable amid a continuing turmoil in the US mortgage market. Moody's Analytics Chief Economist John Lonski: SOUNDBITE: John Lonski, Chief Economist, Moody's Analytics saying (English): " The Fed is concerned about a worsening economy more than anything else. The primary thrust of Federal Reserve policy in the months ahead will be to reduce the downside risks facing the US economy especially as it pertains to the still sinking housing sector." The Fed's statement noted worsening credit conditions and the deepening of the housing contractions. The Fed says those problems are likely to weigh on economic growth over the next few quarters. It also suggested it is open to further lowering of borrowing costs if needed. President Bush was quick to add his support: SOUNDBITE: President George W. Bush saying (English): "Our financial markets have also been subjected to stress. The Federal Reserve and the Treasury acted swiftly to promote financial stability at a crucial time. It was action that was necessary, and I appreciate the leadership of Chairman Bernanke and Secretary Paulson, and they will continue to monitor the markets and the financial sector, and the point I want to make to you is if there needs to be further action, we'll take it in a way that does not damage the long term health of our economy." Tuesday's action is the latest in a serious of rate cuts by the Fed as well as more unconventional moves, including this week extending direct loans to US securities firms for the first time since the Great Depression. The rate cuts come a day after the Fed engineered of a rescue of venerable Wall St. firm Bear Stearns, which bet badly on mortgage-backed investments and could no longer meet its trading obligations. Bobbi Rebell, Reuters, New York. COMPANIES MENTIONED: SYMBOLS: