INSTANT VIEW: Fed leads global coordinated rate cut

NEW YORK (Reuters) - The U.S. Federal Reserve led a coordinated round of global official rate cuts on Wednesday, easing by a half-point, as did the European Central Bank, Bank of England and Swiss, Canadian and Swedish banks.

In an attempt to stem unprecedented global market turmoil, the Fed cut its key federal funds lending rate by half a percentage point to 1.5 percent and also lowered its discount rate by the same amount to 1.75 percent.

The ECB also cut by a half-point to 3.75 percent as did the Bank of England, taking its rate to 4.5 percent.

KEY POINTS: * US Federal Reserve says cutting Fed funds rate 1/2 percentage point to 1.5 percent * Fed says acting in coordination with ECB and Central Banks in Canada, UK, Sweden, Switzerland * Fed says acting because of growing evidence of weaker economic activity, reduced inflation pressure * Fed says intensifying financial market turmoil likely to further restrain spending * Fed says also cutting discount rate by 1/2 point to 1.75 percent

COMMENTS:

MIKE HOLLAND, CHAIRMAN OF HOLLAND & CO, IN NEW YORK

"I did hear a clamor yesterday around the world for a coordinated action exactly like the one we just had.

"I think it's a brilliant example of the U.S. Federal Reserve leading a coordinated effort to do anything that's in its power to cure the ills of the financial system around the world."

MICHAEL FARR, PRESIDENT, FARR, MILLER & WASHINGTON IN WASHINGTON, D.C.

"This is good news. It's another volley of what are supposed to be silver bullets.

"Will it hold? That's the question.

"(The Fed) has more in its arsenal. They have $700 billion that we haven't seen yet.

"I also think that the U.S. markets are already beginning to see other monies coming in to the dollar ... the dollar is becoming a safe haven again."

KLAUS SCHRUEFER, ECONOMIST AT SEB BANK, FRANKFURT

"It's an important step for the central banks to show that they're actively moving to combat the financial crisis. The central banks have previously made a number of cash injections, but these were obviously not enough to rebuild trust among the banks. We'll probably see further interest rate cuts in the next few months, because inflation is continuing to ease."

FRANK GEILFUSS, MARKET ANALYST, LOEBBECKE INVESTMENT